US Hospitality Jobs Rise, But Labor Crisis Is Still Ongoing

The Staffing Agency has published its latest Hospitality Labor Report, offering a detailed look at the current state of the US hospitality workforce. The study reveals that hotels, restaurants, and quick-service chains now employ more people than ever before.

Despite this growth, the sector is far from stable. Turnover remains alarmingly high, wages continue to lag behind national income standards, and many employers still struggle to fill essential roles.

Wages have increased, but not enough to significantly change worker sentiment. As of 2025, employees in the leisure and hospitality sector earn an average of $22.70 per hour, representing a nearly 30 percent increase compared to four years earlier.

However, most front-line workers earn closer to $20 per hour and typically work about 24 hours per week. This amounts to roughly $25,000 per year, which is far below the US average salary of $54,132.

The labor shortage is less about headcount and more about churn. Annual turnover rates across the sector range from 70 to 80 percent. The national benchmark, in comparison, is only 10–15 percent.

Quick-service restaurants often experience turnover rates above 100 percent among crew-level employees. Hotels are facing similar retention difficulties at both entry and supervisory levels, creating operational instability and contributing to inconsistent guest experiences. The main reason is that many employees view hospitality as temporary employment rather than a career.

While the number of open job postings has decreased from 1.18 million in March 2024 to 985,000 in March 2025, the staffing crisis is not resolved, as the effects of COVID-19 continue to impact the workforce landscape. Although restaurants have now surpassed their pre-2020 employment levels, hotels remain understaffed in most states. Only Montana and Washington, D.C., are expected to exceed their 2019 hotel staffing levels by the end of 2025.

Layoffs and discharges have dropped significantly, falling from more than 300,000 in November 2024 to 146,000 in March 2025, which suggests employers are trying harder to retain workers. However, this improvement is overshadowed by consistently high voluntary quit rates.

As of early 2025, the quit rate in the leisure and hospitality sector is approximately 4.8 percent per month, more than double the national average of 2.2 percent.

Overall, the industry has stabilized in terms of total employment numbers, but remains fragile beneath the surface. Long-term stability will depend on investments in retention strategies, training programs, and career development pathways, rather than relying solely on constant hiring to fill ongoing gaps.

To explore this topic in more depth, take a look at our dedicated article on the hospitality industry. It breaks down each major sector, explains how they operate, and highlights the trends shaping the industry.

Photo by Kate Townsend on Unsplash