The food service industry was hardest hit by unemployment due to the COVID-19 pandemic, according to the U.S. Department of Labor Statistics.
According to Restaurant Business Online, data from the U.S. Department of Labor shows the food service industry lost 417,000 employees back in March.
This number is wiping out two years' worth of industry job growth. The data suggest that the restaurant industry took the brunt of these closures' hit because of the COVID-19 pandemic. Overall, the economy lost an estimated 701,000 jobs.
Eater reports that 15.6 million employees worked at about one million restaurants across the country before the pandemic hit. Moreover, before all the stay-at-home restrictions and lockdowns, the hospitality sector was growing rapidly. This downpour of layoffs in the hospitality industry led the economy to its worst month of job losses in modern history.
Following the Bureau of Labor Statistics November jobs report, Enterprenuer.com revealed that the Independent Restaurant Coalition (IRC) released a statement saying that they have warned Congress months ahead that winter will bring another wave of closures and layoffs.
According to them, restaurants have already endured ten months of diminished revenue since indoor dining has been restricted in many states, and outdoor dining becomes a distant memory.
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The scenario indicates that the industry is out of time and out of funds. Even with the Paycheck Protection Program (PPP), the industry is still sustaining massive job losses. Additionally, the program is not enough to save the industry from its current situation and 11 million of its workers.
The IRC is demanding lawmakers to pass the RESTAURANTS Act that can get the restaurant sector through the remainder of this crisis. In November alone, 17,400 jobs were lost in food and beverage places across the country. This data indicates that the industry is still down over 2.1 million jobs since the start of the pandemic.
IRC stated that losses were far more than any other industry and are the first net loss of jobs for the sector since April. The Leisure and Hospitality industry suffered a 134% unemployment rate, which is higher than the national average.
The Restaurants Act
To get back on their feet, the IRC, together with the restaurants and bars across the country, urged Congress to pass the RESTAURANTS Act. This is a bipartisan bill designed to establish a $120 billion Restaurant Revitalization Fund for businesses hurt during the pandemic.
This week during an economic roundtable, President-elect Joe Biden agreed that direct relief for restaurants is needed.
Meanwhile, Dan Jacobs, one of the business owners who participated in the conversation and IRC member, said that the aid should not be a loan but a guarantee.
According to reports, the RESTAURANTS Act gained significant momentum this week as Senator Patty Murray became the fiftieth senator to support the bill. At present, the proposal has the support of 215 House members and 50 senators. This includes Republicans like Sens. Wicker, Ernst, Graham, Cornyn, and Murkowski.
On the other hand, Democrats like Senate Minority Leader Chuck Schumer, Speaker Pelosi, Senator, and Vice President-Elect Harris, Sens. Manchin, Warren, Sinema, Durbin, and many others showed their support as well.
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