Leisure and hospitality posts significant jobs growth, but remains far behind

The big picture: The latest jobs data came out stronger than expected and the Leisure & Hospitality (L&H) industry accounted for nearly one third of all jobs gained in September.

By the numbers: L&H jobs increased by 83,000 in September—bringing the total number of L&H jobs in the United States to 15.8 million.

Yes, but: L&H remains 1.1 million jobs—or 6.7%—below pre-pandemic levels, worse than any other major industry. This is still a significant improvement from August (-7.2%) and January (-10.2%). In comparison, the overall private sector was 0.9% above pre-pandemic levels in September.

• Go deeper: Most of the growth in L&H was in the food & beverage segment, which recovered to ‘only’ 4.5% below pre-pandemic levels. On the other hand, accommodations (hotels and other lodging) remained the furthest behind at -18.5%.

On the bright side: Air transport jobs—which are not included as part of the L&H industry—were up 10% from pre-pandemic levels.

What else: The number of unemployed workers remained relatively low compared to openings, so filling jobs will continue to be a challenge. In fact, for every 100 openings in the overall economy, there are only 60 unemployed workers.

• Quit rates continue to climb. While most indictors have been moving in the right direction, L&H job quits rate have gotten worse. Quit rates increased significantly, from 5.3% in July to 6.1% in August, compared to an unchanged 2.7% for the overall economy.

Why it matters: While many industries are now nearly or fully recovered and are posting job openings focused on growth, L&H is desperately seeking to fill jobs just to recover to where it was in 2019. These jobs are particularly critical for the lodging industry, as the labor supply struggles to meet demand.

View our latest L&H deck here.