Dallas Workers and the Purported Labor Shortage in the Restaurant Industry
Jose Gonzalez lost his job as bar manager at Midnight Rambler inside The Joule hotel last year, making him one of many casualties of Headington Companies mass layoffs after the onset of the pandemic. Gonzalez credits unemployment for allowing him to hopefully wait for my job to come back at Rambler. Time passed and the call never came. (Midnight Rambler reopened on March 26, nearly a year after closing.) Now a year later, others are currently in the position Gonzalez was before he found work with a spirits distribution company. They will soon have less flexibility than he had.
Next month, Texas workers will no longer be eligible for the federal Pandemic Emergency Unemployment Compensation benefit, which had provided an additional $300 per week. On May 18, Gov. Greg Abbott announced Texas would be opting out of the program. Some have lauded the decision. The Texas Restaurant Association, with nearly 40 other business groups, urged the governor to make such a decision in a letter because of the critical labor shortage in Texas. The TRA acknowledges its not a silver bullet.
However, removing the extra weekly allowance that had kept so many economically challenged folks afloat during the pandemic is not likely to Pied Piper workers back into dining rooms or kitchens or behind bar tops. The food sector was the hardest hit industryone that was slow to rehire initiallyand will likely have the hardest time recovering fully.
As dire as some say it is, employment has begun to rebound. About 13.8 million people were employed in leisure and hospitality jobs this March, according to the U.S. Bureau of Labor Statistics. Thats up from 8.7 million last April after mass layoffs took place. Thats not nothing. Still, the latest jobs report from the BLS notes that while the leisure and hospitality sector has added 5.4 million jobs over the year, employment in the industry is down by 2.8 million, or 16.8 percent, since February 2020.
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