Restaurants Reported A Net Loss Of Jobs For The First Time Since April

These job numbers don't bode well for the next few months, when there is likely to be an exponential rise in coronavirus cases and states and municipalities tightening dining room restrictions. California has already issued regional stay-at-home orders that will be triggered once ICU capacity dips below 15% in that specific area. Under these orders, restaurants can only offer takeout and delivery.

New orders will impact full-service restaurants the most, which saw a 3.6 million loss in jobs from February to April, recovering only 2.4 million jobs from April to July. One-half of restaurant operators also expect staffing levels to decline in the next three months, according to a National Restaurant Association survey completed in November. Fifty-eight percent of full-service operators compared to 40% of limited-service restaurants said they expect a staffing reduction during the next three months. Only 5% of operators expect to increase staffing levels during that time. 

While Paycheck Protection Program loans helped several restaurants rehire employees, the funding is all about tapped out and Congress has yet to pass a fresh stimulus package. The current iteration also doesn’t have stimulus checks, which many households then used to spend at restaurants, and would offer a $300 boost to unemployment insurance compared to the previous $600 addition. Some local governments have started offering funding for unemployed restaurant workers. Los Angeles is offering a one-time payment of $800 for 4,000 eligible workers to provide support following outdoor dining closures within Los Angeles County.