'This is not our fault': Pandemic job losses leave hospitality workers with few opportunities

(Reuters) – Cristina Lopez Garcia was excited to buy a house last February.

FILE PHOTO: A worker clears and cleans a table along the sidewalk outside “Eat at Joes” restaurant that continues to remain open following new coronavirus restrictions limiting restaurants to take-out only in Los Angeles County, during the outbreak of the coronavirus disease (COVID-19) in Redondo Beach, California, U.S., November 30, 2020. REUTERS/Mike Blake

She was living an eight-minute drive from her job in the kitchen of a Las Vegas casino and confident that she and her husband could afford their new bills.

But about a month after they moved in, that financial stability disappeared.

The casino shut down because of the coronavirus, leaving her out of work at a time when the couple was already low on savings. Her husband, who worked in the kitchens of other casinos, also lost one of his jobs, and his hours were cut in the other.

Almost a year later, their situation has barely improved.

After years of working in the food industry, the two have been unable to find new jobs during the crisis, which stifled travel and shuttered hotels and restaurants across the globe.

“This is not our fault, it took us all by surprise,” Garcia, 36, said in Spanish. She has applied for about 15 jobs since May. “Our only hope is for our jobs to come back the way we had them.”

Workers in the leisure and hospitality industry have fared worse than most during the pandemic and, barring a highly successful vaccine rollout that finally brings COVID-19 to heel, they face bleak prospects for a return to work.

Job losses seen in December, the first since the early months of the pandemic, fell disproportionately on people working in hotels, bars, restaurants and casinos and other businesses forced to retrench when the virus spread.

Leisure and hospitality firms shed another 498,000 jobs last month as virus infections rose, leading to more restrictions on businesses and causing more people to stay home. Employment in the industry in December was down 23% from pre-pandemic levels in February.

Graphic: An uneven jobs recovery

Policymakers at the Federal Reserve say the uneven recovery could weigh on the labor market, and the broader economy, for years. Some workers in industries facing a slow rebound may need help retraining for other roles in greater demand, said Richmond Fed President Thomas Barkin.

“I keep coming back to waiters and waitresses and bartenders and chefs and housekeepers in hotels and ticket takers in movie theaters and all the rest,” Barkin said in an interview with Reuters this week.

Workers in the leisure and hospitality industry are more likely to be women, Hispanic and in low-paying jobs. Women hold slightly more than half of the jobs in leisure and hospitality, but are only 47% of the overall workforce, according to Labor Department data. Hispanic workers account for 24% of the sector, but only 17% of the workforce. The majority of workers in the industry, 65%, are in the bottom two income quartiles, according to a report from the University of Pennsylvania.

Workers with lower incomes and slim savings to fall back on may have a more difficult time waiting out long periods of joblessness and moving into new industries, economists say.

“They are frozen in place,” Barkin said. “They are not yet in the reallocation model for the jobs that are hiring.”

The December jobs losses do not bode well for the Garcias’ employment prospects.

After being told she is overqualified for jobs at fast-food restaurants and too inexperienced for roles at warehouses or in other industries, Garcia is hoping the casino, the only employer she’s had since she moved to the United States from Mexico a decade ago, will rehire her when it re-opens.

“It’s very complicated to think about starting new somewhere else,” she said.

Source: Read Full Article