Pandemic paralysis: Delta continues to impede hotel, restaurant recovery

Leisure and hospitality added fewer than 100K jobs for 2nd straight month, DOL report shows

National /
Oct.October 08, 2021 11:00 AM
Recovery is still extremely hindered in the leisure and hospitality sector (iStock; Photo Illustration by Steven Dilakian for The Real Deal)

The Delta variant continues to stall recovery in the hospitality sector, as hotels, restaurants and bars added a mere 31,000 jobs to the U.S economy in September after a net gain of zero jobs in August.

The primary driver of job losses during the pandemic, the broader leisure and hospitality sector added 74,000 jobs as arts and entertainment venues reopened, but a slow rebound in hotel hiring contributed just 2,100 of those jobs.

Overall employment in leisure and hospitality remains down 9.4 percent since the start of the pandemic, according to monthly figures released Friday by the Department of Labor.

Still, real estate may stand to benefit.

“The ongoing decline in the unemployment rate, and the rise in wage growth, is good news for the housing market, as it will continue to support strong housing demand,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association.

The unemployment rate fell to 4.8 percent from 5.2 percent, which Fratantoni expects will lead the Federal Reserve to taper its monthly asset purchases.

“This will likely lead to modest increases in interest rates, putting additional pressure on housing affordability at a time [when] home-price appreciation is still very high,” he said.

Modest hiring gains were seen last month in construction, warehousing, storage and retail.

The return to the office, however, stalled in September as 13.2 percent of employees continued to work from home, little changed from August.

The private sector added 317,000 jobs in September, and a revised 366,000 in August. Last month saw the slowest rate of hiring this year, with a record 10.9 million current job openings.

Lackluster job growth disappointed predictions that a new school year, fewer unemployment payments and widespread vaccines would supercharge hiring nationwide.





    Related Articles

    arrow_forward_ios
    The CitizenM hotel in Los Angeles (Booking)
    California starts to refill hotel development pipeline
    California starts to refill hotel development pipeline
    Distress specialist buys Santa Barbara hotel
    Distress specialist buys Santa Barbara hotel
    Distress specialist buys Santa Barbara hotel
    W Hotel with Oaktree Capitals's Co-Chairman Howard Marks, Host Hotels & Resorts CEO James F. Risoleo and Trinity Investment's Sean Hehir (Marriot, Oaktree Capital, Trinity Investments, Host Hotels)
    W Hollywood hotel sells for $197M
    W Hollywood hotel sells for $197M
    Downtown LA’s Standard Hotel to shutter permanently
    Downtown LA’s Standard Hotel to shutter permanently
    Downtown LA’s Standard Hotel to shutter permanently
    Hotel bookings in LA reached pre-pandemic levels in fall
    Hotel bookings in LA reached pre-pandemic levels in fall
    Hotel bookings in LA reached pre-pandemic levels in fall
    Efrem Harkham and 360 North Rodeo Drive (Harkham, Jay Luchs)
    Harkhams sell shuttered Rodeo Drive hotel for $200M
    Harkhams sell shuttered Rodeo Drive hotel for $200M
    (The Estate Yountville)
    OC telecom billionaire Jabara to buy 22-acre Napa commercial resort
    OC telecom billionaire Jabara to buy 22-acre Napa commercial resort
    Lone Star Funds founder John Grayken and Westin LAX (Lone Star, Marriott)
    Price revealed: Lone Star paid $71M for Westin LAX
    Price revealed: Lone Star paid $71M for Westin LAX
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...