US Hotels Grapple with Staffing Shortages Despite Offering Higher Wages

The American Hotel & Lodging Association (AHLA) has released a new report indicating a persistent challenge among hotels in the United States: a significant struggle to hire and retain employees. According to the findings, 72 percent of hotels are unable to fill open positions, even though 82 percent have increased wages to unprecedented levels, 59 percent are providing more flexible hours, and 33 percent have enhanced employee benefits.

This represents a 10 percent improvement from June 2023, when 82 percent of hotels reported staffing issues. However, 12 percent of hotels are currently experiencing severe understaffing that impacts their daily operations. The demand for staff has risen, with hotels now seeking to fill an average of 9 positions per property, an increase from seven at the beginning of the year. Notably, housekeeping positions are the most challenging to fill, identified by 48 percent of hotels as their top hiring need.

AHLA President & CEO Chip Rogers commented on the situation, acknowledging the slow improvement in the hotel workforce due to the implementation of higher wages, better benefits, and more opportunities for upward mobility. Despite these efforts, the nationwide labor shortage remains a critical hurdle, with tens of thousands of hotel jobs unfilled. Rogers emphasized the necessity for legislative action to alleviate these challenges, urging Congress to consider measures such as creating an H-2B returning worker exemption, passing the Asylum Seeker Work Authorization Act, and enacting the H-2 Improvements to Relieve Employers (HIRE) Act.

The urgency of this issue is underscored by the current labor market statistics from the Bureau of Labor Statistics, which show 9 million job openings nationwide with only 6.3 million unemployed individuals. The AHLA advocates for the expansion of the legal H-2B guestworker program, which is currently capped at 66,000 people annually, as a potential solution to fill the critical gaps in the hotel industry workforce.

Additionally, the AHLA supports the Asylum Seeker Work Authorization Act, a bipartisan initiative that proposes allowing asylum seekers to work 30 days after applying for asylum, significantly reducing the current six-month waiting period under existing regulations. This act, among other suggested legislative measures, represents a potential pathway towards addressing the pressing staffing needs of the U.S. hotel industry.