Southeast Minnesota has recently enjoyed a stretch of amazingly warm weather. While snowfall is still to be expected, the region is reaching the point in the year where seasonal work begins to spring back, including employment in the leisure and hospitality industry.

With just over 22,100 jobs in 2015, leisure and hospitality is the fourth largest industry supersector in Southeast Minnesota, making up 9.3 percent of the total jobs in the region. With 1,263 establishments, it also has the third highest number of businesses of the 11 supersectors in the region. Since 2010, the number of jobs in leisure and hospitality has seen an increase, jumping from 20,745 to 22,122 jobs in 2015 (Figure 1). Despite this rise in the number of jobs, the leisure and hospitality industry saw a slight decrease in the number of establishments, dropping from 1,295 firms in 2010 to 1,266 in 2015.

However, the leisure and hospitality industry makes up only 3.3 percent of the total payroll in the region. Average weekly wages in leisure and hospitality have steadily increased over the years, jumping 23 percent from $261 to $322 per week (Table 1). But the actual amount earned in these jobs is considerably lower than those earned in other industries.

This is more than likely due to two things: First, many of the jobs in this industry are low paying, and many offer only part-time hours. For example, according to DEED’s Job Vacancy Survey, 71 percent of the current vacancies for food and beverage serving workers in Southeast Minnesota are part-time, and these vacancies had a median wage offer of only $9.13. At less than $10 per hour, many of the jobs in leisure and hospitality do not pay enough to help a worker meet the basic cost of living needs. However, these jobs could be taken as a second job to supplement other sources of income, such as those for an individual’s full-time job.

The leisure and hospitality industry supersector is broken up into two sectors – arts, entertainment and recreation, and accommodation and food services. Over the years, definite seasonal trends emerge in these two sectors, with increases in the number of jobs during the first three quarters of the year followed by a decline during the fourth quarter (Figure 2).

Job numbers were rising steadily in 2016, with the combined leisure and hospitality supersector reporting 23,314 jobs through the third quarter, the highest number ever posted in the region. It is reasonable to assume that as 2017 progresses and the weather continues to get nicer, the Southeast region will continue to see more jobs added in the leisure and hospitality industry, allowing residents of the region to enjoy theatre, fairs, outdoor venues, and wining and dining on patios. Additionally, this will put more individuals to work, though much of it will be part-time and low-paying. Though it may not be ideal for a person hoping to meet basic cost of living needs, these jobs might be perfect for retirees, college students, and those looking for an additional source of income.

For more information, contact Mark Schultz.