Although the hotel industry in the United States employs the highest number of workers in its history, a new national report from The Staffing Agency highlights a concerning reality: beneath the surface recovery, the workforce remains more fragile than at any time in the past decade.
The Hospitality Labor Report 2025 reveals that U.S. hotels are currently operating with historically high staffing levels, yet annual employee turnover remains at a crisis level. Departures in the hotel sector approach 80% annually, creating a continuous cycle of hiring, additional costs, and pressures on service quality.
Rapid wage growth and a new normal
Between 2020 and 2025, average hourly wages in hospitality — especially in hotels — increased from $16.84 to $22.70, a leap that the report describes as one of the most significant wage changes in the recent U.S. labor market. Wages have now stabilized, creating a new permanent cost base for hotel businesses.
This dynamic squeezes profit margins, particularly for independent hotels that do not have the financial flexibility of large chains.
Las Vegas: The center of a new unionized hotel era
The report notes that Las Vegas has become the largest laboratory of unionized hotel labor in the world. Every major resort on the Strip operates under a collective bargaining agreement, with recent deals providing for increases of 32% by 2030.
The Las Vegas model sets new standards for:
- predictable staffing,
- standardized wage progression,
- reduced gap between frontline staff working conditions and administrative roles.
The report describes it as the most critical test case for the future of work in U.S. hotels.
Migrant labor as the foundation of the hotel workforce
U.S. hotels rely more on migrant workers than any other segment of the economy. According to the report, one in three hotel employees is foreign-born — and the percentage is even higher in cities like New York, Miami, and Los Angeles.
Roles such as housekeeping, food preparation, and back-of-house operations depend on a steady inflow of migrant labor. However:
- new visa restrictions,
- increased fees,
- slower processing times,
- create immediate operational challenges for hotels, often impacting performance in real time.
Technology: A performance accelerator for hotels
The report emphasizes that technology does not replace roles but strengthens existing teams. Hotel groups that use systems for:
- onboarding,
- workforce scheduling,
- cross-training,
- and internal mobility,
demonstrate better performance than those relying solely on staff replenishment.
The hotel industry at a tipping point
The Staffing Agency notes that U.S. hotels are entering a new era of workforce restructuring. The traditional concept of being “fully staffed” is changing, as businesses realize that stability and staff retention are more important than sheer headcount.
According to the report, the winners of the next decade will be brands that treat their workforce as a strategic advantage, investing in:
- culture,
- career development,
- and long-term employee engagement.
The challenge for U.S. hotels is not simply replacing positions but fundamentally redefining how teams are built, supported, and retained.
