In January, the U.S. economy saw significant job growth, adding 353,000 positions and far surpassing the anticipated 180,000 jobs, while the unemployment rate held steady at 3.7%. Despite the overall positive trend, the hospitality sector experienced mixed results, with 11,000 jobs added but a loss of 2,400 jobs in restaurants and bars. This dip in restaurant employment was notable, being only the third monthly loss in nearly two years, yet the industry ended 2023 on a high note with nearly 300,000 new jobs.
Restaurant employment has now exceeded pre-pandemic levels, with optimism for further growth indicated by a National Restaurant Association survey where 88% of operators anticipate hiring more staff in the coming months. Wage growth in the sector has also been robust at 4.5% year-over-year, outpacing the overall inflation rate and driving sales despite high menu prices. The rise in minimum wages across 22 states is set to impact nearly 10 million workers, with significant attention on California’s impending minimum wage increase to $20 for quick-service restaurant workers, which may heighten competition for labor across industries. In response, companies like Denny’s are investing in digital modernization to improve efficiency and manage rising labor costs.
