To find out all about Coronavirus-related unemployment benefits     
FileUnemployment

Sectoral Unemployment: Accommodation And Food Services

Updated : August 4th, 2020

unemployment accommodation food services

The latest report from the Department of Labor for the week from March 21-28 is just in. The unemployment claim numbers are at an all-time high for the second week running at 6,648,000 seasonally adjusted initial claims. The labor department reports that most states attribute these numbers to layoffs led by the accommodation and food services sector.

In this post, we take a sectoral overview of accommodation and food services as an employer and see the unemployment scenario from its perspective. The coronavirus-induced economic slowdown has made the futures of thousands of chefs, bartenders, wait staff, baristas, etc. uncertain. Now, all these employees have been made eligible for Unemployment Insurance claims.

Profile Of Accommodation And Food Services Sector

According to the Bureau of Labor Statistics, this sector employed 14 million people in 2018. It showed an average unemployment rate of 5.4% over the last 4 months.

 The top occupations in this sector are waiting or food service, food preparation, and cashiers. The largest number of employees are wait staff, followed by cooks. Employees earn an average hourly wage of $15.87. Many are employed and paid on an hourly basis in this sector.

The working hours’ number a minimum of 25 on average. Cooks may work much longer hours in a week.

COVID-19 Causes Unemployment in Accommodation And Food Services

This sector has reported the highest number of layoffs in the following states:

  • Texas
  • Michigan
  • Illinois
  • New York
  • Indiana
  • Wisconsin 
  • Virginia
  • Iowa
  • Missouri
  • Tennessee
  • Rhode Island
  • Maine
  • Alabama
  • Georgia

The reason for this is the lockdown of hotels, restaurants, pubs, bars, etc. by the US government in light of these places being potential clusters. As this sector depends on very regular cash flow, it doesn’t have the nest egg that bigger conglomerates can gather. The impact of dropping sales is seen very quickly.

In turn, employment in related businesses such as hotel aggregators like Booking.com gets affected. Such businesses survive on commissions from their third party services between customers and providers of accommodation and food services.

The sector’s nature makes remote work impossible, forcing layoffs and furloughs. Americans are clearly following social distancing norms well.

Types Of Jobs Still Available

As you can see in our post on jobs that are still hiring, dining out took a huge hit, but meal delivery services survive and some are thriving. Pizza chains, take-out meal joints, etc. have scaled up hiring to deal with larger order volumes. A few restaurants have switched to offering delivered and take out meals and are thus surviving with the staff getting reduced wages.

The most common job roles will be in food preparation, delivery services, and stocking/inventory work. It will be very difficult to find more specialized and high paying job roles at this point in time.

Projections For The Future

If the coronavirus-triggered shutdowns continue for too long, worldwide recovery for this sector will be difficult. The growth of accommodation and food services as an employment generating sector was fueled in recent years by the general economic growth and the resulting rise in disposable incomes.

With many big employers having global supply chains, the worldwide economic shutdowns in response to coronavirus will cause losses everywhere. Another big driver of the growth of accommodation and food services is tourism which will surely fall due to job losses.

 

The American Hotel and Lodging Association says that the hotel sub-sector alone has had losses of over $5 billion. Making up the amounts to retroactively pay employees still on rolls when the economy revives, will be hard without a quick revival of global trade and supply chains. 

The restaurant industry was facing labor charge pressures, spiraling rent costs and criticism about food wastage even before the pandemic. This is a good opportunity for corrective actions that go beyond merely restarting production and service.

Related Tags : , , , ,

Did you find this article helpful?   YES | NO   image

  1. So I have been getting ue for 6 months and on Oct 21 I had a fact finding issue found and cleared after taking a month, I got put on hold I got nothing no benefits nothing because I am on hold until cleared up and it was another month later in my favor, I’ve been without payment since Oct 21 since then I have been on HOLD, I am beyond pissed, I call every Fri I see the letter I received saying its in my favor that says I am Monetary Eligible-yet I still have 6 payments on hold. I call DEO and I talk, I beg and I get told “we are working on it”, the letter is in my favor I am poor not rich I am poor Why how do you people get away with this

  2. Hello

    I’m 59 years old and was laid off in March 2020 due to Covid.
    In June 2020 I was advised my job was eliminated and there is no chance of me
    Being brought back. I’m collecting UI since March.

    Pondering the thought of taking my early retirement pension as I can’t survive on
    UI any longer. My pension is of course reduced due to my age. Full pension is age 62.

    If I apply for early reduced pension in this situation, does my UI benefit get decreased? I’m in New York.
    I’m still looking for full time work. No luck.

    Thank you so much
    Lorraine

  3. i was just layed off from my job, i did collect benefits in pa. my job is seasonal igot unemployment payments in jan. to april i had 26 weeks of unemployment , but only used about 13 weeks, and was called back to work. i received 2 weeks of 600 dollars of stimlus money. my question is now that i reopened my 2020 claim . i,m i still elegibe for any more stimlus payments along with my regular unemployment payments.

  4. I am 65 yrs old in California and being layed off in Dec 2020. If I apply for unemployment benefits and collect a company pension, will the pension reduce the unemployment benefits ? If you answer call unemployment what is the department or do you have a phone number for a help line. I have called and get automated questions that do not apply to my situation.
    Cannot get to a live person.

  5. Several years ago I was part of a reduction in force and was early-retired for pension purposes. I count on this small pension ($2K/mo) to supplement my employment which has been inconsistent this past two years. I am filing for UI in IL and I qualify for it, but they are saying my pension reduces my UI benefit to zero. Is that right?

    1. Mike,

      That is partially right. The pension will have an impact on UI benefits. Please check for relevant info on the Unemployment Office’s website.

  6. I have $219.00 left on my UE and still no work due to covid-19 will i be able to get a extension on my UE and will it cover the last two weeks. I request payment tomorrow.

      1. My benefits have expired, still.unemployed due to over 65, wdiebrtes, high blood pressure and have one kidney, Can I get PUA , Cares Act for any assistance

  7. im working at a place i have been layed off from a lot in my career.i got 30 yrs in there so i can retire now but need another job to make it hoping to stay working and get more hours.If i take a new job and get layed off there I will BE DRAWING 1400 A MONTH FROM THE JOB I WORKED 30 YRS would i be able to draw unemployment if the new job lays me off and would it be reduced because of my retirement money of 1400 month.

  8. My bf was laid off in April he got the the 600 to start with now he is only getting the unemployment and no extra when we hear ppl getting 3 checks totaling 40k that might be lies but still that is bullshit.

  9. I Sharon Bland or Sharon Scott or Sharon Ann Mccraw
    Use my phone to claim two of my boyfriends and my own benefits. Is that ok ?

  10. I’m getting pua on employment and it was supposed to be backdated to May 27th when I wasn’t ableable to start my new job and somehow it’s August 24th they said it would be backdated been sending messages and pua people keep saying they have emailed you guys too but nobody gets back to me who do I need to contact about this thank you

  11. I check my checking account balance every week but I cannot tell if I am getting my 300.00 extra unemployment. Also. How can I tell if I got my back time unemployment .

    1. Thelma,

      I did not understand what you meant. Please reach out to the Unemployment Office for precise answers to all your questions.

  12. I have exhausted my UI and all extensions. Not eligible for Fed Ed. Does EDD open a PUA claim for me. Or do I have to aoole for it. Its been past 30 days since receiving my Fed Ed denial letter.

  13. i have been unemployed for the whole year almost and since i have been trying to distance myself to better my all around health, it took me this long to file for benefits, i was hoping to get back pay all the way to the beginning.

    1. Zach,

      To qualify, the claimant is required to have sufficient earnings/employment during the “Base Period”. Please use the “Benefits Calculator” available on this website for more.

  14. Thank you o much for investigating this. When I received an overpayment statement and my benefits where stopped I felt my heart drop to my stomach. Already being evicted by a slumlord and now no income, i had to start working when i feel very at risk for getting the virus because of pre-existing conditions and the reason for filing in the first place. i am a cosmetologist and considered non-essential. I feel utterley hopeless and helpless in this situation.

  15. I cannot contact anyone in the unemployment offices because the phone hangs up on me in all cases after listening over and over the recorded message. I have called three numbers .

    I have received pandemic unemployment since March 31st. There was a pending adjudication but I never received any questions, letters nor emails about it and I was approved and paid. Now…this is what the website says:
    7 of 7 entries
    Issue Identification Number Employer Name Issue Type Status Date Mailed Level
    0002 7693 59-01
    PUA Pending 11/16/2020 Adjudication
    0002 4773 71-01
    Program Integrity Mailed 11/6/2020 Adjudicati
    Claimant Inbox
    Select the Search button to display your action items. To narrow your search, input issue date range below and select the Search button.
    Issue Date: From: To: 11/6/2020 to 11/16/2020
    Inbox
    • Below are the items that require your attention and that you need to take action on for your claim.
    • Select the Document ID
    I need this money to survive as others do while I am trying to re-establish any contract freelance work I am capable of doing….I report my small jobs as I get them but they do not come close to equaling my unemployment as of yet. Please tell me where I can go to find out what is needed here.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please answer a simple Math question: *

https://fileunemployment.org