Hospitality Hiring Trends: Job Openings Rise, but Are Workers Hesitant to Return?

Despite a surge in job openings within the hospitality industry, hiring has slowed, raising questions about workforce dynamics. According to BambooHR’s latest Workforce Insights report, turnover across industries has dropped to 2020 levels, yet hospitality businesses are still struggling to fill roles. Is this a sign of a talent shortage, or are job seekers simply becoming more selective?

To dive deeper into these trends, we spoke with BambooHR about the shifting hiring landscape, how hospitality turnover compares to pre-pandemic levels, and what successful companies are doing to retain employees in an evolving labor market.

Given the 7% increase in job openings for travel/hospitality from January, but a decrease in hiring, does this indicate signs of a talent shortage or hesitation from job seekers?

Based on the data here and projections by the U.S. Bureau of Labor Statistics, job openings and graduates in the leisure & hospitality industry are increasing, indicating that difficulty filling positions is more likely due to hesitation from job seekers than a talent shortage. If we were seeing a true talent shortage, we'd expect to see consistently low application numbers across the board. Instead, the pattern suggests qualified candidates may be available but are being selective about which positions they accept. 

How does turnover in the hospitality industry compare to pre-pandemic levels? Are we seeing a return to historical norms, or is churn still abnormally high?

The below graph breaks out the hospitality employee base by average tenure of those who have a termination date in the system (bottom line graph), average tenure of all employees (middle line), and average tenure of active/current employees (top line). You’ll see that tenure has gradually decreased for each category since before the pandemic. The average tenure of all employees was 106 months in March 2019 and is down to 50 on average as of March 2025, more than a 50% decrease over the last six years.

Are there any differences in turnover between frontline hospitality roles (e.g., housekeeping, food service, front desk) versus managerial positions?

Our report doesn't break down turnover by job level specifically. However, industry patterns typically show frontline roles experiencing higher turnover rates than management positions. This is consistent with hospitality's traditional career ladder structure, where entry-level positions often serve as stepping stones. Management roles, with their higher compensation and greater responsibility, tend to see greater stability.

What strategies have you seen successful hospitality companies use to reduce turnover? Any patterns in benefits, flexibility, or pay adjustments?

The best hospitality companies know that keeping great employees starts with paying them well, giving them flexibility, and investing in their growth. Winning strategies include things like competitive wages and performance bonuses, self-scheduling and better PTO policies to reduce burnout, and expanded benefits like mental health support. 

Companies that prioritize career development and internal promotions keep employees engaged and less likely to leave for outside opportunities. 

Culture matters, too—regular recognition and strong manager relationships go a long way in retention. With manager and peer reviews declining in February, companies may want to double down on engagement. Those who get it right build loyal, motivated teams, cutting turnover and strengthening their business in a competitive market.

The restaurant, food, and beverage industry had the lowest proportion of job openings. Could this signal an oversupply of workers, or are employers hesitant to expand their workforce despite demand?

It’s likely a mix of both. While labor availability has improved, many employers are still cautious about expanding. Economic uncertainty and tight margins in food service mean businesses may be focusing on retention rather than aggressive hiring. Automation and efficiency improvements—like self-service kiosks—are allowing restaurants to do more with fewer workers as well.