As noted in the most recent job market update, job losses in the housing beneficiary sectors were more than offset by employment gains elsewhere. I thought it would be interesting to look at where those new jobs were being created, so I put together a chart showing how many San Diego jobs were gained or lost in various Bureau of Labor Statistics sectors over the past year:
NAICS 71 & 72: Leisure and
NAICS 71 & 72: Leisure and hospitality
The leisure and hospitality supersector is made up of two parts: the arts, entertainment, and recreation sector (sector 71), and the accommodation and food services sector (sector 72).
The arts, entertainment, and recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises (1) establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2) establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.
The accommodation and food services sector comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services establishments because the two activities are often combined at the same establishment.
Wages and employment by
Wages and employment by occupation for the arts, entertainment, and recreation and the accommodation and food services sectors are available from the Occupational Employment Statistics program. The most common occupation in arts, entertainment, and recreation: amusement and recreation attendants. In May 2005, there were 146,990 amusement and recreation attendants in arts, entertainment, and recreation and their average annual wages were $16,260. The most common occupation in accommodation and food services: waiters and waitresses. There were 2,066,850 waiters and waitresses in accommodation and food services and their average annual wages were $16,200.
http://www.bls.gov/iag/leisurehosp.htm
Any Job growth is good, but these aren’t exactly high paying high tech or manufacturing jobs.
I would have to disaree on
I would have to disaree on characterization of the waiter/waitress position being lower income. Last year when the California Restaurant Association proposed Tip Credit for the state there was a SDSU survey conducted of tipped employees in the San Diego market. It found that full service dinner house waiters were getting tip compensation in excess of $30/hour. For lunch and breakfast concepts the number was greater than $20/hour.
The annual $16,200 may appear low, but waiters usually claim just 8% of their sales as income, not the customary 18% left by the guest. Factor in the tax break from under reporting, and your talking and average of $40k plus. Not bad for a part time job… 90% of waters work less than 30 hours/week
“It found that full service
“It found that full service dinner house waiters were getting tip compensation in excess of $30/hour. For lunch and breakfast concepts the number was greater than $20/hour.”
I was a bartender in college and made what I considered good money for that stage of my life. I had a lot more fun than I made money but that is a whole other topic. What I see in that statement reflects the best waiter waitress jobs. Basically that is the top of the food chain (no pun intended). What are the demographics of this sector? Are these people stepping up to the plate and buying houses and condos at these prices on 40K a year. I guess looking at the foreclosure data the answer is yes. I would like to know what the incomes are of the sectors that are growing verses the incomes of the sectors that are tanking. IMO the Leisure and Hospitality sector spearheading job growth in San Diego isn’t exactly the engine that will support current home prices.
Why all the focus on the
Why all the focus on the 7200 Leisure/hospitality jobs ?
That’s roughly equivalent to the construction and retail jobs lost. I don;t think those who lost their retails jobs were in the upper echelons of income either.
Let’s assume the net income effect effect of loss in retail & construction jobs is about the same as the combination of the gain in Leisure/hospitality, wholesale trade and other services.
What’s that leave us with ?
A positive gain of about 8,600 jobs due primarily to Professional services, Government and Education/Health. These are likely median wage categories or better.
I don;t see a skew towards either higher-paying or lower paying jobs in this report. I see a relatively small number of new jobs (8,600) that are likely to result in no skew of wages towards either end of the scale.
Not a great year, but not a disaster either … yet.
“IMO the Leisure and
“IMO the Leisure and Hospitality sector spearheading job growth in San Diego isn’t exactly the engine that will support current home prices.”
I agree, the average hourly hospitality employee doesn’t typically have the means to enter the housing market (at least in San Diego) However there are many (I run 5 restauraunts and a hotel) that do in fact own homes, raise families, etc. Pretty typical stuff.
The income earning has little to do with concept these days. Generally staffing is set by menu price point, with a server at a less expensive restaurant serving 6 to 8 tables at a time whereas the fine dining server may only carry 3. Either way their making similar money. In the survey breakfast/diner servers actually came out aheaad of lunch servers! Granted the FD server has the greater upside…
No matter, I agree with FormerSanDiegan. Hospitality will offset the construction and nothing more.
No way does Hospitality
No way does Hospitality offset the construction, construction is usually a much higher paying job. Especially in a boom where they are working lots of overtime.
So the construction workers
So the construction workers of yesterdays are now your new waiters, waitresses. So much for the American Dream.
The problem is soon these service jobs will also fade away as the economy slows down.