Big impact of mass deportation in the hospitality sector

Mass deportation could gut the sector, as to fill the jobs by American citizens will likely involve them taking a cut in wages, from the mid $20s per hour to the mid $10s per hour. Many immigrant-filled jobs are not automatable — at least for now.

The hospitality sector includes hotels, restaurants, and bars. This sector is very dependent on immigrant labor. The following figures come from 2020 Census analysis. The Census focuses on full time, year-round employment. Industry associations most likely include part-time or casual workers, thus showing larger counts. I use the Census figures because, while they leave out many part time workers, the Census takes care to estimate the number of immigrant workers and within that group the number of unauthorized workers.

Using Census figures, of the 8.5 million persons employed, about 2 million are immigrants. Of them, one million are unauthorized. For example, there are about 800,000 housekeeping staff (Census code 4230). 400,000 of them unauthorized. There are 900,000 food preparation workers (4030), below the level of chefs and service managers. 250,000 of them are immigrants, and half are unauthorized.

To show the extent to which immigrants are crowded into lower status positions, take the example of bartenders who need to be able to talk it up with customers and can make a good income from tips. Of the half million bartenders in the United States, less than 10% or immigrants, and among immigrants less than 10% are unauthorized.

Thus, the immigrant workforce in hospitality is generally in low paid jobs, and jobs that are not customer-facing.  For example, hotel housekeepers likely earn about $15 an hour, as to dishwashers. Bartenders earn about the same, $15, but receive an equal if not more amount from tips. The average hourly wage of American citizens with only a high school degree is $20-25.

Leave a Reply

Your email address will not be published. Required fields are marked *