Top

The Demographics of the Coronavirus Crisis: Impacts at the Front Line of the “Leisure and Hospitality” Sector

Summary: The economic downturn due to coronavirus has disproportionately harmed workers in the leisure and hospitality businesses, such as restaurants and bars—these workers tend to be less-educated and lower-income.

The coronavirus pandemic has led to a large disruption in economic activity, which has disproportionately harmed workers that rely on in-person interaction in the leisure and hospitality industries. Related businesses include food service, bars, performing arts and spectator sports, and more.1 The figures below use recent data from the Current Population Survey to compare the income and demographics of these workers to those in other industries.2 Compared to workers in other industries, leisure and hospitality workers tend to be lower-income, younger, and less educated. They also tend to be Hispanic, non-white, and female.

Figure 1 shows that about 65 percent of workers in the leisure and hospitality sector are in the bottom two income quintiles. Compared to all other industries, workers in leisure and hospitality are about twice as likely to be in the lowest income quintile and 68 percent more likely to be in the second income quintile.

Figure 1. Distribution of Leisure/Hospitality Workers and All Other Workers by Income Levels

DOWNLOAD DATA

Source: Current Population Survey — Annual Social and Economic Supplement (CPS - ASEC) (2017 - 2019), IPUMS-CPS, University of Minnesota, https://ipums.org/.

Note: For example, 36.4 percent of leisure and hospitality workers fall in the bottom 20 percent of the income distribution (first quintile), while 18.3 percent of workers in all other industries fall in the first quintile.

This difference in incomes coincides with differences in several demographic variables:3

Figure 2 shows that leisure and hospitality workers tend to be younger than their peers in other industries. Roughly 43 percent of leisure and hospitality workers are under the age of 30, compared to 21 percent of those in other industries. Younger workers are more likely to be low-income due to lifecycle effects, which explains some but not all of the difference in incomes. Additionally, low-income and younger workers are both less likely to have emergency savings.

Figure 2. Distribution of Leisure/Hospitality Workers and All Other Workers by Age

DOWNLOAD DATA

Source: Current Population Survey — Annual Social and Economic Supplement (CPS - ASEC) (2017 - 2019), IPUMS-CPS, University of Minnesota, https://ipums.org/.

Note: For example 3.3 percent of leisure and hospitality workers are age 25, while 2.2 percent of workers in all other industries are age 25.

Figure 3 shows that leisure and hospitality workers tend to have fewer years of education than their peers in other industries. About half of workers in leisure and hospitality industries have a high school degree or less, compared to less than a third of those in other industries. Less-educated workers are at greater risk of unemployment and have lower expected future earnings.

Figure 3. Distribution of Leisure/Hospitality Workers and All Other Workers by Educational Attainment

DOWNLOAD DATA

Source: Current Population Survey — Annual Social and Economic Supplement (CPS - ASEC) (2017 - 2019), IPUMS-CPS, University of Minnesota, https://ipums.org/.

Note: For example 14 percent of leisure and hospitality workers have less than a high school education, while 7 percent of workers in all other industries have less than a high school education.

Additionally, leisure and hospitality workers are less likely to be white, more likely to be Hispanic, and more likely to be female. About 24 percent of leisure and hospitality workers are Hispanic and 54 percent are white, compared to about 17 percent and 64 percent, respectively, of workers in other industries. More than half of leisure and hospitality workers are female compared to 46 percent of those in other industries.

The significance of the leisure and hospitality sector in state-level economies varies considerably. Figure 4 shows that most states have between six and 11 percent of their workforces in leisure and hospitality industries, but two states stand out: Hawaii, with about 16 percent of its workforce in leisure and hospitality, and Nevada with about 21 percent. These states with high shares of leisure and hospitality employment can be expected to see greater immediate losses in economic activity.

Figure 4. Share of Workers in the Leisure/Hospitality Sector, by State

DOWNLOAD DATA

Source: Current Population Survey — Annual Social and Economic Supplement (CPS - ASEC) (2017 - 2019), IPUMS-CPS, University of Minnesota, https://ipums.org/.

Although the coronavirus pandemic will have widespread health and economic costs, businesses and workers in leisure and hospitality might see disproportionate disruption and hardship. Our above analysis shows that workers in these industries are more likely to be in demographic groups that were already lower income and less educated before coronavirus. Additionally, certain states’ workforces are more heavily concentrated in the leisure and hospitality sector.

More information on the living arrangements of leisure and hospitality workers.



Austin Herrick conducted this analysis, and Kody Carmody wrote this report, under the supervision of Diane Lim and Richard Prisinzano. Mariko Paulson produced the charts for the PWBM website.


  1. We use “leisure and hospitality” as defined in the Bureau of Labor Statistics’ leisure and hospitality supersector, consisting of Census industry codes 8560, 8570, 8580, 8590, 8660, 8670, 8680, and 8690.  ↩

  2. Current Population Survey — Annual Social and Economic Supplement (CPS - ASEC) (2017 - 2019), IPUMS-CPS, University of Minnesota, https://ipums.org/.  ↩

  3. Due to sample size concerns, we don't tabulate across categories and cannot say how much of the variation in income is explained by demographics.  ↩

  Age,Other Industries,Hospitality Industry
  18,0.00608866366,0.0471718338
  19,0.00877199941,0.04058559693
  20,0.0123207157,0.04357247516
  21,0.01503678865,0.04278814863
  22,0.01652630172,0.03871785833
  23,0.01868180227,0.03815489098
  24,0.0198889555,0.03495738128
  25,0.02157081461,0.03310690621
  26,0.0228670867,0.03033004752
  27,0.02302643454,0.03168828048
  28,0.02359769224,0.02534432206
  29,0.02392507464,0.02477030827
  30,0.02370490347,0.02370662852
  31,0.02291031817,0.02252045088
  32,0.02270610145,0.02172959945
  33,0.02214432623,0.01980838101
  34,0.02198032732,0.02045107236
  35,0.02182069431,0.02150582364
  36,0.02259381553,0.01776947014
  37,0.02278625071,0.0174550206
  38,0.02303649776,0.01750373241
  39,0.02134424436,0.01631679837
  40,0.02144764396,0.0162872183
  41,0.02096709719,0.01529033641
  42,0.02089908028,0.01570964669
  43,0.02040459643,0.01433757195
  44,0.02024973722,0.01374822096
  45,0.02064023146,0.01364287087
  46,0.02207665008,0.01615809418
  47,0.02216065599,0.01600684826
  48,0.02195412052,0.01576542284
  49,0.02159476504,0.01543857199
  50,0.02115221346,0.01485065528
  51,0.02073792355,0.01447083972
  52,0.02104649795,0.01502369453
  53,0.02215457093,0.01381679925
  54,0.02121851133,0.0109398073
  55,0.02100112528,0.01333824557
  56,0.02090102824,0.01302860371
  57,0.01969645255,0.01335680096
  58,0.02000692794,0.01150988899
  59,0.01939606285,0.009928261819
  60,0.01802550748,0.01024118288
  61,0.01676318323,0.009829577044
  62,0.015359465,0.009745574348
  63,0.01383013816,0.007912664814
  64,0.01201665155,0.006951975042
  65,0.009880982442,0.004693116126
  66,0.008186522191,0.004537867295
  67,0.007476834829,0.004232077474
  68,0.006204458507,0.003885016081
  69,0.005592702312,0.00356182731
  70,0.004913429754,0.003442482376
  71,0.003861424057,0.002483359963
  72,0.00347917675,0.001681637352
  73,0.002675203916,0.002409333543
  74,0.002447801244,0.001992803822
  75,0.00201089269,0.001324988362
  76,0.001711530498,0.001015720998
  77,0.001495794146,0.001147991732
  78,0.001138547031,0.001090636151
  79,0.0009718611599,0.0005624502559
  80,0.0006702655639,0.0005450708712
  81,0.0007578008901,0.0004133578063
  82,0.0007224845342,0.0003378688612
  83,0.0006234145101,0.0002827730528
  84,0.0004616479048,0.0005009143935
  85,0.0002865879875,0.0004589311806
  86,0.0001973075658,0.00037644673
  87,0.0002037227614,0.0003997540768
  88,0.0001471169593,0.0001733150508
  89,0.0001646227712,0.0001103981593
  90,0.0006872203773,0.001055460235  
  StateOfResidence,Hospitality Industry
  Utah,0.06073436477
  Wisconsin,0.06511069649
  North Dakota,0.06587867974
  Iowa,0.0710324231
  Pennsylvania,0.07118611822
  New Jersey,0.07307018946
  Alabama,0.07376443854
  Missouri,0.07447070788
  Indiana,0.07501718698
  Connecticut,0.07545719755
  South Dakota,0.07672315989
  Arkansas,0.07707586605
  Kentucky,0.07836184304
  Kansas,0.07842677221
  Alaska,0.07868958568
  New Hampshire,0.07901519877
  Virginia,0.0794266002
  Idaho,0.07959213301
  South Carolina,0.07967191465
  Georgia,0.07982595994
  North Carolina,0.08015650455
  Texas,0.08063310645
  Maine,0.08064814644
  Nebraska,0.08078150268
  West Virginia,0.08116940808
  Minnesota,0.08122102525
  Ohio,0.08177945753
  Rhode Island,0.0829418676
  Massachusetts,0.08331331956
  Wyoming,0.08357982309
  Oklahoma,0.08602714471
  Tennessee,0.08609412052
  Michigan,0.08739866279
  Mississippi,0.08773726387
  Illinois,0.08775970428
  Arizona,0.08813877303
  Delaware,0.0881858545
  Maryland,0.08850677962
  New York,0.08933152431
  Vermont,0.09079247823
  Colorado,0.09151033019
  Oregon,0.09469895286
  District of Columbia,0.09514516274
  Washington,0.09726379232
  California,0.09774998881
  Louisiana,0.1026297358
  Montana,0.1031915071
  Florida,0.1073026598
  New Mexico,0.1111855108
  Hawaii,0.1579209613
  Nevada,0.2118525113  
  Education,Other Industries,Hospitality Industry
  0,0.06650005082,0.1391728286
  1,0.2587562008,0.3525766171
  2,0.277045713,0.3064024386
  3,0.2491231727,0.1646191049
  4,0.1485748627,0.0372290108  
  Education,Hospitality Industry
  0,0.1665551706
  1,0.1151305849
  2,0.09551885086
  3,0.05935285796
  4,0.02336770318  
  Race,Other Industries,Hospitality Industry
  Black,0.1212437202,0.1338064168
  Other,0.006776654562,0.01107345737
  Hispanic,0.1650484808,0.2388882829
  Asian,0.06396753413,0.07163656481
  White,0.6429636103,0.5445952781  
  MetropolitanStatus,Other Industries,Hospitality Industry
  Central City,0.285834056,0.33877189
  Outside Central City,0.462236501,0.427198585
  Not In A Metropolitan Area,0.117861502,0.100874425  
  Gender,Hospitality Industry
  Female,0.09395339465
  Male,0.08120428082  
  IncomeQuintile,Other Industries,Hospitality Industry
  Bottom Quintile,0.1826502645,0.3636141129
  Second Quintile,0.1772753887,0.2972702129
  Middle Quintile,0.2184410187,0.1811689065
  Fourth Quintile,0.2078957406,0.09743861847
  Top Quintile,0.2137375875,0.06050814916  
  IncomeQuintile,Bottom Quintile,Second Quintile,Middle Quintile,Fourth Quintile,Top Quintile
  Other Industries,0.1826502645,0.1772753887,0.2184410187,0.2078957406,0.2137375875
  Hospitality Industry,0.3636141129,0.2972702129,0.1811689065,0.09743861847,0.06050814916
  Education,Less than High School,High School,Some College,College,Graduate/Professional Degree
  Other Industries,0.06650005082,0.2587562008,0.277045713,0.2491231727,0.1485748627
  Hospitality Industry,0.1391728286,0.3525766171,0.3064024386,0.1646191049,0.0372290108