Labor Shortage Crisis in the Hotel Industry Persists Despite Wage Increase
The U.S. hotel industry is still wrestling with severe staffing shortages in 2025, despite a nearly 30% wage increase over the past four years. The industry is witnessing a declining interest among younger workers, who express concerns about job stability and long-term career prospects, even in the face of significant pay improvements.
Adding to the crisis are immigration restrictions. The demand for H-2B guest workers has seen a 46% surge since 2018. Even though the Department of Homeland Security authorized over 64,000 supplemental visas in 2025, the demand continues to outpace the supply. This imbalance is further exacerbated by major hotel chains’ aggressive expansion plans, intensifying the competition for workers in an already strained labor market.
The travel industry, which directly employs 8 million Americans and supports a total of 15 million jobs, relies heavily on a workforce of approximately 2.7 million immigrant workers. In response to the ongoing workforce challenges, hotel operators are investing more in retention strategies and efficiency technologies.
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Source: https://www.mondaq.com/unitedstates/hotels-hospitality/1676280/travel-leisure-september-2025-update