Hospitality & Leisure Leads Job Growth
This morning, the Department of Labor released the September jobs report and notably, the hospitality and leisure sector led with 96,000 jobs created. The overall number of jobs created last month was 336,000. The wider service sector, which includes hospitality and leisure, grew by 234,000. The entire hospitality and leisure sector is only 200,000 jobs from returning to pre-pandemic levels—an important indicator of renewed confidence among employers that consumer spending will remain steady in the near-term.
While the September jobs report is welcome news for employers, the Federal Reserve will view the U.S. economy’s resiliency with a skeptical eye. As more workers are added to employers’ payrolls, consumer demand will likely quicken its pace. The Fed’s campaign to curb persistent inflation by raising interest rates comes into direct conflict with the trends exhibited in the jobs report. Amid uncertainty between a series of high-profile labor strikes and rising energy costs, inflation rates continue to tick upwards which would warrant another quarter-point rate hike.
Contact NCA President & CEO Joe Trauger at [email protected] if you have any questions or comments.