US Labor Market Faces Obstacle to Full Recovery from Pandemic

While the US labor market has officially surpassed pre-pandemic levels, the accommodations industry, including hotels, remains the last major holdout in achieving full recovery. In September, employment in the food services and drinking places industry returned to its February 2020 level, but accommodations employment still stands 10.3% below pre-pandemic levels. This weakness in accommodations employment accounts for the entire employment gap in the leisure and hospitality industry, which is just 184,000 jobs short of February 2020 levels. Despite this, the overall labor market added 336,000 new jobs in September, indicating the economy's resilience.