Food Services Industry Faces Labor Shortage As Workers Change Priorities

The food services industry has been facing labor shortages as workers leave their restaurant jobs behind to prioritize child care and mental health, as well as exploring industries with better opportunities.

A study by Black Box Intelligence and Snagajob found that despite the 70% increase in job vacancies and a 10% increase in hourly wages for limited-service workers year over year, there is a 10% decrease in prospective employees.

“I don't even get one single phone call, even for the whole week," Sue Choi, who owns several Korean restaurants in New York City, told ABC News.

Restaurants and fast-food courts are finding themselves putting up “Help Wanted” signs on their windows more often as a growing number of workers have rejected working in the industry.

The food industry is particularly challenging for the many workers who have children. The report found restaurant workers often find themselves working long hours while having limited child care options, especially when schools pursue a hybrid or remote approach.

Restaurant work has also taken a toll on employees' mental health. About 78% of workers said their mental health had been negatively affected in the past year and their jobs are simply not worth the stress.

Another contributing aspect is the taxing work environment. The study found that 51% of workers say restaurant work lacks the consistent schedule and pay they want.

As workers leave the industry, they have gravitated towards other industries with better opportunities as the ​​job market recently had a record-high 9.2 million openings.

According to economic development researcher Chuck McShane, "restaurant workers ‘pivoted’ during the pandemic" and moved toward jobs in building material and garden supply stores, which experienced a boom amid the housing and home gardening frenzy in the past year.

This industry also has more stable work hours and higher pay. The average hourly rate for a job in the construction supplies and wholesale industry is $17.48, as opposed to an average of $12.29 for the restaurant industry, according to payscale.com.

Gary Burtless, a senior fellow in economic studies at the Brookings Institution, told ABC News that unemployment benefits could also be a contributing factor for the current labor shortage.

"The generosity of unemployment benefits is no doubt also a partial explanation for why I think a lot of these low-pay establishments in particular are finding it hard to persuade people to come back to work, but it's not just that," Burtless said. "There is a childcare issue for a lot of families ... and fear of getting COVID in your place of work."

The report from Black Box Intelligence and Snagajob recommended restaurants offer more flexibility in hours to accommodate child care schedules, heavily advertise benefits and perks of the job and create a culture of open dialogue about mental health, mask mandates and harassment from customers.