US Hotel Industry Growing, but Labor Shortage Slows Down Expansion

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Manage episode 253629174 series 2530089
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The United States is seeing a positive trend in the growth of its hotel industry, but a lack of manpower threatens to hamper this expansion, according to a report. A report by media company Skift revealed that US hotel companies are seeing continuous growth and expansion of operations. However, a severe labor shortage is causing delays in many projects and forcing companies to spend more on human resources. Skift reported that hotel companies in the country find it difficult to find qualified workers for positions requiring physical work, such as carpentry, and for those requiring managerial expertise. According to Skift, the problem is rooted in the Great Recession of 2008. During this period of economic decline, hotel companies put building projects on hold, compelling construction employees to search for new jobs. When hotel companies decided to resume projects after the recession, filling construction jobs became a struggle. One reason for this is that professions involving manual work no longer appealed to young workers, who preferred technology-related jobs. This shift in occupational interest resulted in the dependence on foreign laborers, who are recently under pressure because of unfavorable immigration policies. According to the US Bureau of Labor Statistics, the demand for construction jobs is expected to grow by up to 11% until 2028. Hence, the industry needs to be more aggressive in hiring workers to keep up with the demand. In the meantime, some companies have tried to use drones, robots, 3D printers, and other technologies to address the labor shortage. Other companies strived to attract workers by providing in-house training and increasing pay, incentives, and bonuses.

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