Hospitality Set to Surge While Warehousing Holds Steady

As we turn the corner into summer, the hourly labor market is beginning to heat up, particularly in hospitality. Instawork’s platform data and proprietary Pay Signal Index (PSI) reveal a classic seasonal pattern: a softening in May as spring winds down, followed by a June rebound, especially in sectors tied to events, tourism, and dining.

Here’s what our latest data shows about where the hourly market stands and where it’s headed.

Hospitality: Cooling consumer demand, but a summer rebound is underway

Our Pay Signal Index (PSI), which measures pay pressure across industries, offers a real-time view of market dynamics. You can read more about the Instawork Pay Signal Index methodology here.  

May brought a noticeable slowdown in consumer spending, particularly in discretionary areas like dining out and entertainment. As inflation and economic uncertainty weighed on household budgets, many hospitality businesses experienced fewer bookings and lower foot traffic, which in turn led to reduced staffing needs.

Hospitality roles, like bartenders and event servers, experienced a slight decline in May, emphasizing the spring cooling before summer demand.

Certain roles related to increased outdoor events, like summer concert series, increased in pay rates, particularly for concession stand worker roles.

In June, we anticipate these trends will continue with additional increased pay rates for in demand positions like bartenders and event servers as summer gets into full swing.

Warehousing & Light Industrial: A picture of stability

While hospitality dipped slightly, warehousing proved more resilient as there is still a lot of activity and worker demand due to businesses ordering a lot of goods ahead of possible tariffs in late Spring. Now that those shipments have arrived on U.S. shores, workers are in demand to move that inventory to retail locations or consumers.

More skilled warehouse associate roles increased slightly while entry level warehouse associate roles experienced a slight decline as businesses continue to navigate tariff uncertainty. Forklift drivers also experience a slight increase in May.

Looking ahead to June, we expect these trends to hold steady with a possible dip in pay rates for intermediate level warehouse associates as warehouses begin to stabilize after unprecedented demand and inventory volume.

What this means for businesses

The next few weeks will be critical for businesses competing for hourly talent. Here’s how to stay ahead:

• Hospitality businesses: Secure your summer staff now. Offering shift premiums, especially for evenings and weekends, can help attract high-quality workers.
  
  
• Warehousing & logistics: Focus on retention strategies and keep pay rates competitive to maintain operational continuity.
  
  
• All employers: Flexibility matters. Workers continue to value schedules that fit their lives and workplaces that respect their time and contributions.
  
  

After a brief seasonal dip, the hourly labor market is accelerating into summer. Hospitality is already rebounding and will lead the charge in June, while warehousing remains a model of steady demand. Businesses that act early, and smartly, will have the upper hand in securing the talent they need for a successful summer.

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