$100 Billion Hospitality Boom Faces Labor Crunch, Report Finds

NEW YORK CITY, NY, UNITED STATES, May 4, 2026 /EINPresswire.com/ -- Canada’s hospitality sector is back at full volume — but workforce stability hasn’t kept pace.

A new report, released by The Staffing Agency titled 'Beyond the Boom: Canada’s Hospitality Labor Market in 2025 and the Road to 2030', shows spending in Canada hit $104 billion in 2025, with employment higher than pre-pandemic levels in 2019. Dining rooms are full again and travel has returned, yet the industry is still struggling to hold on to workers.

The Canada-focused report shows that hospitality operators are hiring, but not securing long-term staff. Termed as ‘labor paradox’, the report states that margins are getting strained by part-time roles where students, newcomers and temporary workers fill critical shifts. That keeps operations running, but drives turnover and weakens reliability.

Costs are compounding the issue. Labor is no longer just hourly pay. It now includes higher wage floors, added premiums in expensive cities, benefits and the ongoing cost of turnover and training. Margins are tightening even as demand holds. “In Canada, the wage increase isn’t a threshold; it’s the new baseline,” said Steven Kamali, CEO of The Staffing Agency. “The question now isn’t if we can pay more, but if we can make the model work.”

Another trend reveled in the report is that housing has emerged as the defining fault line. In major cities such as Toronto, Vancouver or Montreal, workers can’t afford to live near their jobs. So, commute becomes longer and shits go unfilled. Union activity is also rising in urban centers, reshaping scheduling, pay structures, and operations.

Kamali adds, “The pressure is not limited to Canada. In the United States also, wage growth is outpacing productivity in many markets, while housing constraints continue to shape labor availability. Canada’s reliance on international talent adds another layer of sensitivity to policy changes.”

The path forward should be to build a more reliable talent pipeline, address housing near job centers, and tailor workforce strategies by region. Without this, growth will remain uneven. You can view the full report here.

About The Staffing Agency:
The Staffing Agency is a national recruiting organization built on a growing portfolio of sector specific divisions, including The Chef Agency, The Hotel Agency and The Estate Agency. The company specializes in hospitality and service industry recruitment and maintains a proprietary nationwide pipeline supported by more than 14 years of industry experience. The Staffing Agency provides talent solutions to operators, ownership groups and corporate brands across the United States.

Emily Hosey
The Staffing Agency
eh@thestaffingagency.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.