doing what matters for jobs & the economy · analysis, requiring employees with education,...

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What is Driving Growth? The growth of the hospitality and tourism sector in the state of California is primarily due to: the recovering economy and a rise in consumer confidence, resulting in an increase in tourism to California from other states and countries. the dollar is weakening, making vacationing in the United States less expensive for international tourists; and, the recent expansion of California theme parks contributes to the state’s standing as a top tourist destination. Why Hospitality and Tourism? Hospitality and tourism are an important sector for California’s economy, employing close to 1.7 million workers, and generat- ing revenue of nearly $95 billion in 2012. Following the peak of the financial crisis and the recession, some hospitality and tourism jobs were lost. In 2012, job growth returned and created employment opportunities and career pathways for people with varying level of skills and education. Jobs will be plentiful for first-time job seekers, senior citizens and those seeking part-time or alternative work schedules. The sector offers opportunities for work- ers to move into supervisory and managerial positions. Employers also need to fill positions in maintenance, engi- neering, security, information technology, accounting, finance, marketing, human resources, and planning and analysis, requiring employees with education, experience, and training to support the sector. Doing What Matters for Jobs & the Economy Sector Profile Hospitality & Tourism What makes up the Hospitality and Tourism Sector? The hospitality and tourism sector includes lodging, restaurants, theme parks, cruise lines, transportation, and additional fields within the tourism industry. This sector includes four clusters: food services, accommodation, activities/amusement and transportation. In addition to industry information, this profile includes occupational information specific to retail sectors, focusing on entry- level occupations as they represent an initial opportunity to gain work experience and employability skills and offer a starting point for career progression within the sector. Quick Facts J In 2012, there were more than 1.75 million hospitality and tourism jobs and about 100,000 firms in California. J Employment in the hospitality and tourism sector is projected to create 210,000 new jobs in California by 2017. J The total revenue generated by hospitality and tourism businesses in 2012 exceeded $95 billion. J Hospitality and tourism offers an abundance of employment opportunities. In 2012, there were over 10,000 openings advertised online for first- line supervisors of food preparation and service workers, 7,000 for cooks, over 4,500 for waiters and waitresses, 4,400 for food service managers, and over 3,000 for hotel, motel and resort clerks. J The number of jobs in hospitality and tourism is expected to grow by 11.8% by 2017. INSIDER PERSPECTIVE Training is not only a productivity tool, but it’s also a retention tool that adds value for our associates because they see it as a pathway to new career opportunities and advancement. Employees specifically cite the opportunity for advancement as a key factor in their decisions to stay with Marriott. — J.W. Marriott, Jr. Executive Chairman and Chairman of the Board Marriott International, Inc.

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Page 1: Doing What Matters for Jobs & the Economy · analysis, requiring employees with education, experience, and training to support the sector. Doing What Matters for Jobs & the Economy

What is Driving Growth?The growth of the hospitality and tourism sector in the state of California is primarily due to:

• the recovering economy and a rise in consumer confidence, resulting in an increase in tourism to California from other states and countries.

• the dollar is weakening, making vacationing in the United States less expensive for international tourists; and, • the recent expansion of California theme parks contributes to the state’s standing as a top tourist destination.

Why Hospitality and Tourism?Hospitality and tourism are an important sector for California’s economy, employing close to 1.7 million workers, and generat-ing revenue of nearly $95 billion in 2012. Following the peak of the financial crisis and the recession, some hospitality and tourism jobs were lost. In 2012, job growth returned and created employment opportunities and career pathways for people with varying level of skills and education.

Jobs will be plentiful for first-time job seekers, senior citizens and those seeking part-time or alternative work schedules. The sector offers opportunities for work-ers to move into supervisory and managerial positions. Employers also need to fill positions in maintenance, engi-neering, security, information technology, accounting, finance, marketing, human resources, and planning and analysis, requiring employees with education, experience, and training to support the sector.

Doing What Matters for Jobs & the Economy

Sector Profile Hospitality & TourismWhat makes up the Hospitality and Tourism Sector?The hospitality and tourism sector includes lodging, restaurants, theme parks, cruise lines, transportation, and additional fields within the tourism industry. This sector includes four clusters: food services, accommodation, activities/amusement and transportation.

In addition to industry information, this profile includes occupational information specific to retail sectors, focusing on entry-level occupations as they represent an initial opportunity to gain work experience and employability skills and offer a starting point for career progression within the sector.

Quick Facts J In 2012, there were more than 1.75 million hospitality and tourism jobs and about 100,000 firms in California. J Employment in the hospitality and tourism sector is projected to create 210,000 new jobs in California by 2017. J The total revenue generated by hospitality and tourism businesses in 2012 exceeded $95 billion. J Hospitality and tourism offers an abundance of employment opportunities. In 2012, there were over 10,000 openings advertised online for first-

line supervisors of food preparation and service workers, 7,000 for cooks, over 4,500 for waiters and waitresses, 4,400 for food service managers, and over 3,000 for hotel, motel and resort clerks.

J The number of jobs in hospitality and tourism is expected to grow by 11.8% by 2017.

INSIDER PERSPECTIVETraining is not only a productivity tool, but it’s also a retention tool that adds value for our associates because they see it as a pathway to new career opportunities and advancement. Employees specifically cite the opportunity for advancement as a key factor in their decisions to stay with Marriott.

— J.W. Marriott, Jr.Executive Chairman and Chairman of the Board

Marriott International, Inc.

Page 2: Doing What Matters for Jobs & the Economy · analysis, requiring employees with education, experience, and training to support the sector. Doing What Matters for Jobs & the Economy

What is the Industry Outlook?The largest cluster by number of jobs is food services and drinking places with 1.2 million jobs in 2012. Tourist activities/amusement accounted for 230,000 jobs, accommodation for 225,000 jobs and transportation/travel for 110,000 jobs. Due to the recession, the sector as a whole lost jobs between 2008 and 2011. However, 61,000 jobs were created in 2012 alone. Through 2017 the sector is expected to create 210,000 jobs, the majority in food services and drinking places (165,000 jobs). With a predicted growth rate of close to 12% over the next five years, the hospitality and tourism sector may be well on its way to recovery.

GROWTH BY INDUSTRY SECTOR (CALIFORNIA, 2012-2017)

— Economic and Workforce Development through the California Community Colleges —

The graph below represents the number of new jobs forecasted between 2012 and 2017 in each cluster. Food services and drinking places represent almost 80% of the total job growth, with 164,547 new jobs projected. Accommodation and activi-ties/amusement will see 20,466 and 19,713 new jobs respectively, while the travel/transportation cluster is only expected to add 4,765 jobs. None of the clusters are expected to experience overall job losses.

CHANGE IN EMPLOYMENT BY CLUSTER (CALIFORNIA, 2012-2017)

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Page 3: Doing What Matters for Jobs & the Economy · analysis, requiring employees with education, experience, and training to support the sector. Doing What Matters for Jobs & the Economy

— Doing What Matters for Jobs & the Economy —

What Clusters are Driving Economic Activity?The hospitality and tourism sector generated close to $95 billion in sales revenue in 2012. The food services and drink-ing places cluster produced the highest amount of revenue ($48.2 billion), followed by accommodation ($21 billion), activities/amusement ($17.2 billion), and travel/transporta-tion ($8.6 billion).

Where are the “Hot Spots”?The Los Angeles/Orange region outpaces all other regions in the state, accounting for over one-third of the firms (36,014) and of the jobs (575,565) in the state. Other regions with a large number of jobs and firms related to the sector are the Inland Empire (9,106 firms and 170,478 jobs) and San Diego & Imperial counties (9,073 firms and 184,247 jobs). The Central region, San Francisco Bay and the Greater Sacramento area also have relatively high concentrations of firms and jobs.

HOSPITALITY EMPLOYMENT & REVENUE BY REGION LOCATION OF HOSPITALITY FIRMS

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2012 REVENUE BY INDUSTRY CLUSTER

Page 4: Doing What Matters for Jobs & the Economy · analysis, requiring employees with education, experience, and training to support the sector. Doing What Matters for Jobs & the Economy

— Economic and Workforce Development through the California Community Colleges —

Job Title2012 Jobs

3-year Change

% Change

Open-ings

Median Hourly Wage

Minimum Education Level

Online Job Postings

Waiters and Waitresses 236,330 29,786 13% 65,244 $9.13 Short-term OJT 4,510

Food Preparation Workers 64,792 9,445 15% 16,445 $9.50 Short-term OJT 2,460

Hosts and Hostesses (Restaurants & Coffee Shops) 37,210 3,861 10% 11,709 $9.38 Short-term OJT NA

Bartenders 43,015 4,094 10% 8,601 $9.47 Short-term OJT NA

Amusement and Recreation Attendants 27,675 2,655 10% 7,427 $9.97 Short-term OJT NA

Hotel, Motel and Resort Desk Clerks 23,033 3,058 13% 5,844 $11.63 Short-term OJT 3,030

Receptionists and Information Clerks 4,825 229 5% 667 $14.07 Short-term OJT NA

Restaurant Cooks 106,166 15,046 14% 21,860 $11.26 Moderate-term OJT 6,925

First-line Supervisors of Food Preparation & Serving Workers 81,531 9,919 12% 15,107 $13.17 Related work experience 10,825

Food Service Managers 65,305 (185) (0.3%) 4,336 $15.28 Related work experience 4,410

How Much Does It Pay?The majority of jobs in the hospitality and tourism sector are in food services, which is the cluster with the lowest average earn-ings of $20,954 per year. Activities/amusement pays on average $26,184 and accommodation $33,757. Transportation offers higher compensations with an average of $52,232.

1Earnings data referenced here represents payroll averages for the sector. Payroll wages/earnings are calculated from quarterly aggregate payroll totals divided by the number of employees in a sector, regardless of occupational classification (job title).2 Data for occupations shown here represents level of employment in the hospitality and tourism industry only, usually referred to as staffing pattern totals, and does not represent occupational employment across all industry sectors.

Data notes and sources: Data and information included in the Sector Profile were compiled from the following public and proprietary sources: U.S. Bureau of Labor Statistics; CA Employment Development Department; Economic Modeling Specialists, Inc.; InfoGroup, Inc.; The Conference Board - Help Wanted Online; Hotel Managers Group; Marriott (blogs.Marriott.com and jobs.marriott.com/careers); Burning Glass - Labor Market Insight.

Employers with the most job postings over the same period included: Marriott (5,080); Hyatt (3,430); Starbucks (2,970); Hilton (2,605); Pizza Hut (1,640); Taco Bell (1,500); Aramark (1,170); KFC (1,055); Wyndham (952) and Ritz Carlton (875).

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2012 RETAIL AVERAGE EARNINGS BY SECTOR1

What Jobs are in Demand?The table below presents the top 10 occupations based on the largest number of jobs in 2012. The majority of jobs in demand are in food preparation and service. Employees can move up to higher paying positions (not listed in the top ten because of the smaller number of jobs) such as chefs and head cooks (15,514 jobs in 2012 and $18.14/hour) or lodging managers (14,625 jobs in 2012 and $16.70/hour). Between November 2012 and February 2013, hospitality and tourism firms posted more than 84,000 online job advertisements. If available, individual occupational totals are shown in the column on the far right. Not shown in the table but deserving honorable mention were chefs and headcooks, and lodging managers, with 2,320 and 2,280 postings, respectively.

TOP JOB OPPORTUNITIES IN HOSPITALITY AND TOURISM