The U.S. foodservice industry shed jobs for the second consecutive month as restaurants and bars continue to navigate a softer labor market.
The U.S. restaurant industry lost 26,100 jobs in July, marking the second consecutive month of employment declines for foodservice businesses, according to data from the Bureau of Labor Statistics.
The latest figures, reported by Nation’s Restaurant News, show continued weakness in restaurant employment after the industry lost nearly 33,000 jobs in June.
The July decline comes during the summer season, when restaurants typically increase staffing to accommodate higher customer traffic and seasonal demand.
The restaurant industry’s job losses came as the overall U.S. labor market also showed signs of slowing.
The U.S. economy lost 23,000 nonfarm jobs in July, according to the Bureau of Labor Statistics, while the unemployment rate edged down to 4.1%. The decline in total employment was unexpected, with economists previously anticipating job growth.
The July report also included downward revisions to employment gains reported for May and June, adding to concerns about the pace of hiring across the U.S. economy.
Foodservice employment has followed a similar pattern. After adding jobs earlier in the year, restaurants and bars have now recorded two consecutive months of losses.
The timing of the decline is significant for an industry that traditionally relies on seasonal hiring during the summer.
Restaurants often bring on additional employees during the warmer months to handle increased demand, particularly in tourist destinations, outdoor dining locations and other high-traffic markets.
Instead, operators have been more cautious about staffing levels as they balance labor expenses against customer demand.
The latest employment figures suggest that restaurants are adjusting their workforces more closely to current sales expectations, rather than adding significant numbers of seasonal employees.
