Workforce

Restaurant and bar employment unexpectedly slips in June

New government data show a decline in the employee head counts of eating and drinking places. Hotels, in contrast, accelerated their hiring.
restaurant jobs
Restaurant hiring unexpectedly slowed slightly last month. | Photo by Jonathan Maze

Restaurants and bars slightly shrank their payrolls in June, even as hiring across other fields remained robust with the addition of more than 209,000 jobs, according to new statistics from the U.S. Bureau of Labor Statistics (BLS).

The national unemployment rate remained unchanged at 3.6%, the agency reported Friday morning.

Last month marked the rare occasion when other economic sectors outpaced eating and drinking places in hiring. BLS figures show restaurant and bar jobs declined by nearly 1,000 positions, leaving the business with a total of 12.3 million employees.

The decline came as many public chains are still reporting significant growth in same-restaurant sales. But the increases in many instances have come from higher pricing rather than traffic gains. Handling fewer guests means fewer employees may be needed.

The decline snaps a 28-month run of increased hiring by restaurants and bars. The industry remained the United States’ second largest employer, behind healthcare. Yet restaurants remain one of the few industries that have yet to recover jobs lost during the pandemic. Restaurants and bars remain about 80,000 jobs short of where they were in February 2020.

In contrast to restaurants, hotels stepped up their hiring during the month, extending their head counts by 5,500 hundred.  The additions raised total employment in that sector to 1.9 million.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Food

Inside Chili's quest to craft a value-priced burger that could take on McDonald's

Behind the Menu: How the casual-dining chain smashes expectations with a winning combination of familiarity and price with its new Big Smasher burger.

Financing

Here's the big problem with all these $5 meal deals

The Bottom Line: With McDonald’s planning a $5 value meal of its own, more brands are already jumping onto the bandwagon. But not everybody will pay $5.

Financing

What did the Starbucks CEO expect?

The Bottom Line: Howard Schultz needed just one bad quarter to make public his displeasure with the coffee shop chain. But the stage was set for that two years ago.

Trending

More from our partners