Growth of 28,000 jobs observed in the Leisure and Hospitality sector in August
The leisure and hospitality sector in Las Vegas continues to face challenges, with high churn at the entry level and childcare-sensitive shifts being key concerns. Despite these hurdles, the sector has shown resilience, as indicated by recent employment figures.
According to the US Bureau of Labor Statistics, the unemployment rate in the leisure and hospitality sector reached 6.4% in August, affecting 890,000 people. This is an increase from 5.5% (748,000) a year earlier. However, it's worth noting that the sector saw a net gain of jobs in August, with a total increase of 28,000.
The workforce in food services and drinking places grew by 11,000 people, and accommodation and food services boosted their total jobs by 13,200. Amusements, gambling, and recreation also saw a net gain of 12,700 new jobs.
The largest casinos in Las Vegas, including MGM Resorts International properties like MGM Grand and New York-New York, and Caesars Palace, reported a net gain of 12,700 new jobs in August, despite layoffs in the previous year. These casinos are part of the biggest operators on the Las Vegas Strip, which continued hiring even amid workforce reductions in some areas.
In terms of employment numbers, the leisure and hospitality sector in Las Vegas currently employs over 17 million people. Food services and drinking places in the city have a workforce of 12.37 million, while accommodation and food services have 14.32 million, and amusements, gambling, and recreation have 1.89 million.
Wages for nonsupervisory employees in the sector have seen a 3.5% year-over-year increase, and in August, wages rose slightly, by $0.09. The sector is seeking to attract skilled and receptive workers to manage increasing labor costs and wage increases.
To optimize labor costs, restaurants in Las Vegas are implementing strategies such as menu engineering, streamlined service practices, and pre-batching. These strategies aim to improve efficiency and reduce the need for excessive staffing.
The sector's revenue is driven by event kickoffs and slot tournaments, resulting in more robust margins. These factors contribute to the sector's resilience in the face of challenges.
Interestingly, women now account for over half the workforce in the leisure and hospitality sector, reflecting a shift in the industry's demographics.
As the leisure and hospitality sector continues to evolve, it will be interesting to see how it adapts to the changing landscape, balancing the need for growth with the challenges of high churn and childcare-sensitive shifts.
