Labor Shortage in the Hospitality Industry: Where Have All the Workers Gone?

2020 was a disruptive year, to say the least.

The COVID-19 pandemic interrupted our everyday routines. It changed the way we worked, the way we socialized, and even how we enjoyed our favorite hospitality venue. Labor shortages abounded. The pandemic affected every industry in one way or another, but it's no secret that it hit the hospitality industry more than many.

Hotels experienced one labor shortage after another between vacancies and restaurant doors shuttered to in-person dining. Let's face it: the hospitalityl industry experienced a significant blow to its workforce.

However, employee restrictions have been lifted, and the term “lockdown” is long gone from our everyday vocabulary. Things have been back to normal for hotel staff in the hospitality sector for some time now. And yet, hotel operations still remain roughly 500,000 employees below 2020 levels. 

So, why haven’t workers come back?!

Key Takeaways

1. The labor shortage in hospitality isn’t just about missing workers. It’s about changing worker priorities.
2. Gig economy platforms are reshaping how hospitality work gets done, with apps like shiftNOW giving workers control while providing businesses with a scalable, on-demand staffing solution.
3. To stay competitive, hospitality businesses must adapt by embracing flexible, tech-enabled staffing models, which fill shifts, maintain service quality, and stay ahead of industry changes.

What Workers Want Amid the Labor Shortage in the Hospitality Industry

Hospitality workers are increasingly seeking autonomy over when, where, and why they work. Which makes consistent, reliable help hard to come by for hotel management. 

According to the 2023 National Restaurant Association State of the Industry Report, only 1 in 10 operators believed that employee retention and recruitment will be easier in 2023 than in 2022.

But that’s where gig economy apps come in. 

Gig economy apps offer a middleman approach to job openings. These apps bridge the gap between businesses that need help and qualified workers who want control over when they work and earn money. It solves the problem of shortages and employee satisfaction.

Here are three things your hospitality workforce is placing value on and why hotel workers are finding them on gig economy apps:

Money

The federal hourly wage has been set at $7.25 an hour since 2009, so it’s no surprise that wages are the main driver of people’s work decisions. It’s hard to find a job that fulfills a passion and that pays high enough wages to keep the lights on. 

It may be money for a down payment on a house. Perhaps it's money that’s going straight to paying the bills. It could be money that’s funding a college education. And some hospitality employees simply want some extra cash. Let's be honest. Who doesn't? 

Through gig economy apps, workers are finding more flexible opportunities that offer competitive rates.

Full-time workers are leveraging these apps to fund their lifestyles and the everyday costs of living. This is true especially as inflation remains high and a recession looms. Certain gig work apps, like TaskRabbit and Rover, even enable users to set their own rates.

Working on your feet all day as a server for $7.25 an hour isn’t that appealing. It's especially unappealing when they could simply book a gig to install someone’s TV in less than an hour and make just as much (or even more!). That's employee satisfaction through the roof.

Flexibility

We’ve said it before and we’ll say it again: workers want to decide when they work, where they work, why they work, and how much they get paid. 

Total flexibility is the name of the game, and gig economy apps are offering just that. Before committing to work, gig workers can view exactly what the gig entails. They can also see when it starts and ends and how much they’ll make during the process. 

We could be talking about:  

• A college student looking to pick up work in between classes
• A teacher that’s trying to occupy time over summer break
• A 9-5 employee that’s looking for a side hustle

In virtually all cases, people are increasingly seeking to take the reins back when it comes to their schedule. 

But they're not just seeking flexibility in their schedules. They're seeking flexibility in where they work, what types of positions they work, and ultimately, who they work for. Gig economy apps offer just that.

Shift workers are drawn to the idea that they could deliver food through an app like DoorDash one day. The next day they could move furniture through an app like TaskRabbit. On the weekends, they might pick up some extra income dog walking through an app like Rover.

But perhaps the best part? If they don't like the work or the people, they don't have to go back. Gig economy apps operate with no strings attached. This means there's no obligation for workers to pick up gigs that are unfulfilling or don't pay enough.

Making New Connections

Following the height of the COVID-19 pandemic, people are ready to get out there and make up for the lost time. And for many, that means meeting new people.

People spent a significant period holed up at home or working remotely for their company. Now, they’re seeking non-traditional ways to work in an effort to network and make new connections.

With gig economy apps, you don’t have to work with the same people day in and day out. 

Platforms, like shiftNOW, enable you to take on shift work at various hospitality businesses.  This means you can connect with locals while completing a bartending shift one day. The next day you can meet new friends at your dishwashing shift.

As people relocate to new cities, they're turning to gig economy apps as an avenue for networking opportunities and a way to make new friends.

A New Way to Work

The way people work is changing. Thanks to gig economy platforms, they’re no longer limited to a singular job type, place of work, or even industry. Workers today crave variety, flexibility, and the ability to pursue multiple income streams on their own terms. And as a result, it has left hospitality businesses struggling to find high-quality, consistent help.

That’s where shiftNOW comes in. shiftNOW is providing the best of both worlds by allowing shift workers to get what they want out of open opportunities while bringing workers back to an industry that so desperately needs help. 

Whether it’s filling last-minute openings or building a bench of on-demand talent, shiftNOW gives businesses the tools to thrive in a new labor landscape.

Don’t let a labor shortage in the hospitality industry affect your business. Access shiftNOW’s network of high-quality shift workers by visiting app.shiftnow.com.

To learn more about shiftNOW and how we’re shaking things up in the gig economy, visit www.shiftnow.com.

Request a demo. See the shiftNOW platform in action and understand all of the benefits it has to offer your business.

FAQs on Labor Shortage in Hospitality Industry

1. Why are hospitality workers turning to gig economy apps instead of returning to traditional jobs?

Many hospitality workers are prioritizing flexibility, better pay, and autonomy. All of these gig economy apps provide. Unlike traditional roles, these platforms allow workers to choose when, where, and how often they work, often with higher earning potential and no long-term commitment.

2. How can hospitality businesses compete with the gig economy to attract talent?

To stay competitive, businesses should consider adopting flexible scheduling, offering competitive wages, and embracing gig platforms like shiftNOW. Partnering with shiftNOW allows businesses to tap into a reliable, on-demand labor pool without the overhead of full-time hiring.

3. Is gig work a sustainable solution for hospitality staffing?

Yes. For many workers and businesses, gig work offers a scalable and sustainable solution. Workers get the freedom and income they want, and businesses gain access to a vetted, motivated workforce ready to fill shifts and meet demand without long-term hiring delays.