Over the past four years, U.S. hotels have steadily rebuilt their workforce, recovering more than 467,000 jobs lost during the peak of the Covid-19 crisis. By 2024, direct hotel employment exceeded 2.15 million—slightly higher than forecast—and total wages paid surpassed $125 billion.
Yet while employment figures continue to rise, the hospitality sector still faces a chronic staffing shortfall that shows little sign of abating.
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Despite improved recruitment numbers and higher overall compensation, the hotel industry remains under pressure to attract and retain talent. The American Hotel & Lodging Association (AHLA) estimates that 2025 will see the sector add over 14,000 direct jobs, bringing total employment to 2.17 million.
However, that still lags behind pre-pandemic benchmarks. More concerningly, nearly two-thirds of hoteliers continue to cite staffing as a major challenge, even as demand for travel and accommodation surges.
This dual trend—historic career opportunities on the one hand, persistent worker shortages on the other—defines the present and future of hotel employment in the United States.
Growing demand meets a limited labour pool
The hospitality industry is experiencing a sustained upswing in demand, driven by increased leisure travel, rising business events, and growing consumer confidence.
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By GlobalDataYet the labour market has failed to keep pace. Many former hospitality workers exited the industry during the pandemic, seeking jobs in other sectors offering remote work, higher pay, or more stable hours.
The result is a limited labour pool for employers who must now compete not only with one another but with a broader range of industries.
A December 2024 AHLA-Hireology survey revealed that 64.9% of hoteliers are still experiencing staffing shortages. In response, the sector has embraced new talent acquisition strategies.
Nearly half of hotel employers (47.5%) are increasing wages to attract staff, while others are offering flexible scheduling (19.6%) and employee perks such as hotel discounts (13.4%).
These strategies are part of a wider trend towards improving the perception of hospitality careers, particularly among younger workers.
But filling vacancies remains a persistent hurdle, especially in roles such as housekeeping, food service, and maintenance—positions that are often labour-intensive and less flexible.
Upward mobility fuels long-term career appeal
Despite its staffing challenges, the hotel industry continues to offer one of the most dynamic paths for career growth.
According to job search platform Indeed, hotel housekeeping ranks among the top 12 roles in terms of upward mobility, with many workers able to progress into supervisory or management roles within a few years.
A significant number of hospitality leaders began their careers on the front lines, highlighting the potential for internal promotion and long-term advancement. In fact, 72.1% of industry professionals surveyed believe that opportunities for career progression are either stronger than ever or have remained steady since the pandemic.
The AHLA Foundation plays a central role in developing the industry’s talent pipeline.
Through targeted recruitment programmes, scholarship funding, and on-the-job training, the Foundation has supported more than 45,000 hospitality workers. Since its creation, it has reinvested nearly $44 million into career development initiatives designed to help employees thrive in hospitality.
These efforts are essential not only for individual career growth but also for building a sustainable future for the industry.
As the workforce evolves, programmes that foster skills development and career longevity will be critical in addressing long-term employment needs.
Recruitment, retention and the road ahead
To address the workforce gap, hotel operators are expanding their efforts beyond traditional hiring practices.
Many are partnering with local workforce development agencies, community colleges, and high schools to introduce students and jobseekers to hospitality careers.
Others are investing in employer branding and storytelling to highlight the diversity and flexibility of roles available—from front-desk management to culinary arts, marketing, and engineering.
Retention remains as important as recruitment. While wage increases help, today’s workers are also looking for inclusive workplaces, mental health support, and clear career pathways. Employers that provide structured training, recognition programmes, and leadership development are more likely to retain top talent.
Automation and technology also play a role in easing workforce burdens. Hotels are investing in tools that streamline guest services, allowing limited staff to operate more efficiently.
However, the personal touch remains integral to the hospitality experience, meaning that human capital will remain at the heart of the industry for years to come.
Looking forward, employment in the hotel sector is expected to continue its gradual upward trajectory. Forecasts suggest total compensation in 2025 will exceed $128 billion, a 2.13% increase over the previous year.
While this represents real progress, it’s clear that solving the workforce puzzle will take more than just time—it will require investment, innovation, and a renewed commitment to people.
