A new study of staff shortages by the World Travel & Tourism Council (WTTC) reveals the sector realized a U.S. labor shortfall of almost 700,000 workers during 2021. According to the report, the outlook for 2022 is only slightly more positive, with approximately 480,000 direct U.S. travel and tourism jobs, or one in 13 positions, predicted to go unfilled next year.
The figures from WTTC, produced in partnership with Oxford Economics, for the first time analyzed staff shortages across the U.S. and other major travel and tourism markets including the U.K., Spain, France, Italy and Portugal, focusing on the period between July and December 2021 and 2022. As part of its report, the WTTC recommended actions (cited below) that governments and businesses can use to tackle the labor shortage issue in the travel and tourism sector.
Amid decreasing unemployment rates and rising travel demand, travel and tourism businesses have been left struggling to fill available job vacancies. The study details demand for U.S. travel and tourism jobs, tallying 6.6 million open positions during the second half of 2021, with labor shortages projected at 690,000, equating to one in nine unfilled vacancies, or a shortfall of 11 percent. According to officials at WTTC, continued worker shortages in the sector could significantly hinder travel and tourism recovery in the U.S., as well as slow the eagerly anticipated return of the industry’s robust economic impact in communities across the country. WTTC has developed solutions for governments and businesses to address the issue.
In a press statement, Julia Simpson, WTTC's president and CEO said, “The U.S. economic recovery could be put in serious jeopardy if we don’t have enough people to fill these jobs as travelers return. If we cannot fill these vacancies, it could seriously threaten the survival of travel and tourism businesses across the U.S.
“Companies dependent on tourism have been hanging on for the upside; this is just another blow that many may not survive,” added Simpson.
The global tourism body also warned that reinstating damaging travel restrictions—such as the recent measures aimed at curbing the spread of the new COVID-19 variant—do not stop the spread of the virus and damage livelihoods instead.
WTTC’s report outlines recommendations for governments and businesses to tackle the alarming travel and tourism labor shortage crisis, recognizing the impact of furlough schemes. These include facilitating labor mobility and remote working, providing safety nets, upskilling and reskilling the workforce and retaining talent, and creating and promoting education and apprenticeships.
WTTC’s recent study showed the devastating impact of COVID-19 on the travel and tourism sector with 62 million jobs lost globally; however, the proactive measures and actions by many governments enabled the sector to save millions of jobs and livelihoods at risk through various job retention schemes.
This year, as travel demand began to strengthen in line with the easing of restrictions and the recovering domestic market, the labor supply has been unable to match the rising labor demand, particularly during the second half of 2021. All countries—across the UK, Spain, France, Italy and Portugal in addition to the U.S.—showed significant staff shortages, with employment demand starting to outstrip the available labor supply.
According to WTTC, staff shortages represent a key issue for the global travel and tourism sector, and while issues around supply and demand are set to gradually adjust during 2022, the problem is likely to remain. The sector’s recovery and economies around the world depend on businesses and governments being able to solve this critical issue to meet the returning demand for travel.
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