Dive Brief:
- The American Hotel & Lodging Association expects the U.S. hotel industry to add jobs in 2025, but staffing will remain “well below” 2019 levels, according to the association’s 2025 State of the Industry Partner Trends & Insights Report, released last week before President Donald Trump’s tariffs went into effect.
- Based on state-level data provided by Oxford Economics and STR, AHLA anticipates the industry will add 14,000 jobs this year. Though the industry lost more than 680,000 employees due to the COVID pandemic, over the past four years, U.S. hotels have added back more than 467,000 direct employees, per the report.
- Though the hospitality industry has faced staffing challenges since the pandemic — even as hotels have upped wages — hotels are also leveraging new tools and technology to better grow and retain their workforce, the report found. The impact of tariffs, however, may slow economic growth across industries.
Dive Insight:
In 2025, the total wages, salaries and other compensation paid in U.S. hotels is expected to increase by 2.13%, according to AHLA’s report, representing a 25.6% increase above 2019.
Last year, the organization projected that number would grow 4% year on year in 2024.
“The hospitality sector has made significant strides in rebuilding its workforce and creating opportunities for career advancement, but staffing shortages continue to present significant challenges,” said AHLA President and CEO Rosanna Maietta, in a statement. “The good news is that hotels have never been more competitive, offering strong wages and expanded benefits and focusing on employee satisfaction.”
Current challenges include tariffs, which may impact the ability of industries across the U.S. to maximize employment, Federal Reserve Chair Jerome Powell said Friday.
When asked if tariffs could impact AHLA staffing projections, a spokesperson said the association had no further information to add at this time.
While AHLA projects that more than half of all U.S. states will see higher levels of hotel employment this year, only two — Montana and the District of Columbia — will see staffing exceed pre-pandemic levels.
New Hampshire, meanwhile, will see the biggest drop in hotel staffing, with 2025 employment levels projected to be approximately 21.9% below 2019 levels, per the report.
The states with the highest projected change in total wages, salaries and other compensation paid, as compared to 2019, will be Rhode Island (up approximately 70%) and North Dakota (up 57.2%).
The report also noted that hotels in every state are expected to generate more state and local taxes than in 2024 this year, totalling $55.46 billion. Hotel industries in Nevada, New York and California will generate the most tax revenue.
The report also compiled trends noticed by AHLA partners, including insights on generational shifts, guest expectations and AI. Oracle, for instance, projected that AI will move “from experiment to impact” in 2025, as hoteliers adopt the technology to meet guest needs and streamline operations.
And hotels can better retain and attract workers by incorporating more technology into hiring, according to insights from Hireology, which found that candidates are seeking clear, mobile-friendly job postings as well as fast application processes.
As of January, nearly two-thirds (65%) of surveyed hotels reported facing continued labor shortages, with 9% saying they are “severely understaffed,” according to a survey conducted by AHLA and Hireology.
According to the Bureau of Labor Statistics’ March jobs report, leisure and hospitality employment showed little change during the month.
