The bar, restaurant and hotel hiring blitz continued in July, as demand for cooks, service staff and accommodation workers led the United States to another robust month of gains jobs.
The vast leisure and hospitality sector, which includes restaurants and accommodation, jumped again with an overall gain of 380,000 jobs. Food services and drinking places accounted for just over 250,000 of these items.
The peak summer months and relaxed fears of Covid-19 are pushing more Americans to dine out and have sparked a comeback in an industry that the pandemic ravaged in 2020, economists say.
The Ministry of Labor noted that the recent return to leisure and hospitality has left employment in this sector just 10% below what it was in February 2020.
Headlines from the July 2021 jobs report showed that the U.S. economy created 943,000 jobs last month and the unemployment rate fell sharply from 5.9% to 5.4%. CNBC studied the net changes by industry for July jobs based on data in the government jobs report.
The government’s hiring was also based on a recent recovery with a net creation of 240,000 jobs. State and local governments contributed the bulk of those gains, with universities and other public school districts recruiting before the fall semester 2021.
“In July, notable job gains took place in leisure and hospitality, local public education, and professional and business services,” the Department of Labor said in a press release. “Fluctuations in education personnel due to the pandemic have distorted normal seasonal patterns of accumulation and layoff, likely contributing to job gains in July.”
Manufacturing and construction industries added 27,000 jobs and 11,000 jobs, respectively, while transportation and warehousing gained nearly 50,000.
Health care and social assistance added 46,800 and the general professional and business services industry added 60,000.
Retail trade posted a slight net decline of 5,500 jobs. Building material and garden supply stores lost more than 30,000 jobs in the month as Americans pulled back from home projects and spring gardening sales cooled.
– CNBC’s Nate Rattner contributed reporting.
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