The Bureau of Labor Statistics’ jobs report from September, released Friday, exceeded expectations, with about 254,000 positions added during the month, while the unemployment rate remained steady at 4.1%.
Driving much of that momentum was the restaurant and bars sector, which added a staggering 69,400 jobs last month on a seasonally-adjusted basis. The average monthly gain for job additions in the sector throughout the prior 12 months had been 14,000.
Traditionally, the months of September, October, and November are a peak hiring time for the foodservice industry, as restaurants contend with attrition from many high school and college workers heading back to school. That said, September’s expansion marked the largest monthly increase in the industry in more than two years.
According to the National Restaurant Association, eating and drinking places added a net 136,800 jobs in total in the third quarter, marking the largest quarterly employment growth since Q3 2022, which followed a historically high labor shortage. By comparison, the second quarter saw less than 8,000 positions added in the sector.
As of September, the sector is about 1.5% (179,000 jobs) above its February 2020 employment peak.
Despite the robust month of employment growth, disparities remain between sectors. The full-service segment continues to have a long path to recovery from the pandemic. As of August, employment levels at full-service establishments remain 4% below pre-pandemic levels. The cafeterias/buffets segment is -32% compared to February 2020 levels.
Meanwhile, employment at snack and non-alcoholic beverage concepts (including coffee, doughnut, and ice cream shops), was nearly 135,000 – or 17% – higher than February 2020, while quick-service and fast casual segments are up 4% versus pre-pandemic levels.
The employment level between states also remains uneven. Thirty-six states surpassed pre-pandemic employment levels in August, led by South Dakota (+15%), Montana (+13%), Nevada (+13%), and Utah (+12%). Fourteen states and Washington, D.C., remain below pre-pandemic levels, with Maryland and Louisiana down the most, at -7%.
Contact Alicia Kelso at [email protected]
