Summary:
- Immigrant labor is the backbone of U.S. hospitality, The Staffing Agency reported.
- One in three workers is foreign-born, concentrated in NYC, Miami, and L.A.
- Companies that invest in labor and teams will grow; others face turnover and rising costs.
THE AMERICAN HOSPITALITY industry is more dependent on immigrant labor than any other sector, according to The Staffing Agency. One in three U.S. hospitality workers is foreign-born, with higher shares in New York, Miami and Los Angeles.
TSA’s “The Hospitality Labor Report” found that roles like housekeeping and kitchen prep depend on this workforce, which faces immediate pressure from new visa limits, higher fees and slower processing.
The industry has more workers than ever, but turnover remains high, the report said. Restaurants and hotels report annual turnover of 70 to 80 percent, while quick-service restaurants often exceed 100 percent.
Recruitment timelines have slowed and retention is now the main driver of service quality. Labor costs continue to outpace revenue growth, especially for independent operators, reducing profitability and accelerating structural change.
Between 2020 and early 2025, average hospitality wages rose from $16.84 to $22.70. Wages have since stabilized, establishing a new baseline for compensation, it said.
Tech billionaire Elon Musk said the U.S. has benefited from the H-1B visa program and that ending it would harm the country, noting American companies profit from talent from India.
Unionized hospitality hub
Las Vegas is now the largest hub for unionized hospitality and continues to shape the national conversation on service work, the report found. Every major Strip resort operates under a union contract, with new agreements setting wages 32 percent higher by 2030.
Moreover, the city serves as a key test case for service work, with predictable staffing, standardized wage progression and a smaller gap between frontline and management conditions.
Tech supplements
Technology is a multiplier, not a replacement, TSA said. Operators who combine it with hiring, training and retention outperform those relying on headcount recovery alone, using systems for onboarding, scheduling, cross-training and internal mobility.
Operators are rethinking what it means to be fully staffed. The report also said companies that treat labor as a strategic asset, build stable teams, strengthen culture and invest in career paths will grow, while others face turnover and rising costs.
“The challenge is not simply rebuilding the workforce, but redefining it for a new era of expectations, technology and labor realities,” the report found.
A recent report by the Hospitality Sales & Marketing Association International Foundation found that artificial intelligence is reshaping jobs and organizational priorities. With a shrinking workforce and rising competition for talent, people have become the key differentiator, and organizations that prioritize them will lead the industry.
