US job growth is driven by the leisure and hospitality industry

The recently released JOLTS report by the Bureau of Labor Statistics shows us that job openings are declining despite the robust labor market. The number of available jobs decreased down to just 10.8 million from the 11.2 million new jobs created in December 2022.

In February, private sector employment increased by 242,000 jobs, as stated by the ADP National Employment Report. The report also indicates that the private sector's annual pay increased by 7.2% year-over-year. The leisure and hospitality industry made up 34% of the new jobs, making it the industry with the largest gains.

Leisure and hospitality were the fastest-growing sectors in America in 2022. The number of new job openings in the sector has increased by 10% since January 2022. At the same time, we see how job openings in the information sector have decreased by 55% since January 2022. Out of the 242,000 jobs in February, only 9000 came from private employers in the information sector.

These two sectors experiencing opposite hiring trends are the result of the Covid-19 pandemic. With the onset of lockdowns, jobs in the information sector increased drastically while those in leisure and hospitality halted, leaving for essential services. As America moves forward from the pandemic, and people start returning to normal, the leisure and hospitality sectors are recovering. More and more private sector jobs keep opening up in the hospitality industry than in the information sector. This helps the industry keep the unemployment level low. Hospitality and healthcare were the two major sectors that were hit the hardest by the pandemic, and these two sectors make up for almost 30% of all private sector jobs in America.