The United States economy added 256,000 jobs in December, well above expectations, while the unemployment rate fell to 4.1%, according to federal data released Friday morning.
Employment in leisure and hospitality grew by 43,000 positions in December, while the sector added an average of 24,000 jobs per month in 2024, or about half the average monthly gain of 47,000 in 2023. Eating and drinking places specifically added a net 29,800 jobs in December on a seasonally-adjusted basis, marking an increase from 23,200 jobs added in November. According to the National Restaurant Association, this was just the second time the sector added more than 20,000 jobs in consecutive months in 2024.
For the full year, 172,500 net new jobs were added at eating and drinking establishments. This is about 136,500 fewer jobs than what was added in the sector in 2023 and follows nearly four years of catch up from pandemic-induced job losses, the association notes.
That said, the industry is now about 1.4% above its February 2020 employment peak, equating to about 173,000 jobs above pre-pandemic levels. Those jobs, however, have not been equally distributed among segments. The full-service category, for instance, remains about 4% lower than pre-pandemic numbers, while the cafeterias/buffets category is down by 31% from February 2020.
Conversely, the quick-service and fast-casual segments are 4% higher, while snack and beverage concepts are 17% higher than February 2020.
There also remains significant market disparity. National Restaurant Association data shows that 24 states and the District of Columbia currently have fewer jobs than they did in November 2019, led by North Dakota (-8%), Maryland, Louisiana, and Virginia (-7% each), and Vermont and Oregon (-6% each).
Meanwhile, 26 states are above their pre-pandemic employment levels, led by Nevada (12%), Oklahoma and Utah (each up 11%), and Montana (up 10%).
Friday’s federal data also shows that average hourly earnings increased at their slowest monthly rate since April, while year-over-year wage growth – at 3.8% - marked the most modest pace since May 2021. The association notes that wage growth has been steadily slowing since its peak in March 2022.
Contact Alicia Kelso at [email protected]
