Photo: Andrés Correa Guatarasma / Courtesy
Governor Kathy Hochul’s $216 billion annual budget proposal outlines a job market devastated by the pandemic and one that will continue to lag in New York City.
The hotel and tourism industry and retail sectors hit hardest by travel restrictions and closures during the COVID-19 outbreaks from spring 2020 will not recover all lost jobs for another three to four years, according to the outlook of the government presented with its budget proposal.
“While other sectors have improved markedly, the retail, wholesale and leisure and hospitality and other services sectors lag the furthest behind in their recoveries and are not expected to recover before 2026”says the forecast of the state government.
During a presentation on Tuesday, the state budget director, Robert Mujica, He said the leisure and hospitality industry lost 30% of its jobs during the pandemic “and they are recovering more slowly” than other sectors.
In general, New York State is projected to recover another 5.6% of its lost jobs this year, progress, but not enough to offset the gargantuan losses in 2020 and 2021. “At this rate, the state is projected to reach its pre-pandemic peak by 2024 in February 2020,” according to the forecast.
In particular the hotel industry, highly dependent on tourism, faces a long and steep climb to bring back jobs lost.
“Less than 20,000 of the 55,000 jobs have returned in the hotel sector. So far, 125 hotels and 18,000 rooms remain closed,” said Vijay Dandapani, president of the Hotel Association of New York City (HANYC)).
“Less than 20,000 of the 55,000 jobs have returned in the hotel sector. So far, 125 hotels and 18,000 rooms remain closed” in NYC
Vijay Dandapani, President of the Hotel Association of New York City (HANYC).
Dandapani highlighted that there are glimmers of progress, with 20,000 new hotel rooms planned in the last two years despite the pandemic.
Rich Maroko, president of the 40,000-member Hotel and Gaming Trades Council, commented, “It’s no secret that the hotel industry is suffering. This is why it is so important to have leaders in government who recognize that fact and take steps to help hospitality workers., help the industry recover and look for ways to create new jobs in the hospitality industry. So far, Governor Hochul is prioritizing all three, with unemployment aid, reopening incentives, and a smart approach to gaming expansion.”
Maroko also supports Hochul’s decision to license up to three casinos in the New York City region, what brings new potential job opportunities for laid-off hotel workers, highlighted New York Post.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.