Food Service Unemployment Nears Double National Average

New BLS data shows 1 in 14 food service workers was jobless in February 2026

Mar. 14, 2026 at 2:33am

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According to the Bureau of Labor Statistics, the unemployment rate in the food service and drinking places industry reached 7.1% in February 2026 - nearly double the national average of 4.1%. This represents an estimated 875,000 food service workers actively looking for work but unable to find it, with the industry losing 29,700 jobs from January to February 2026.

Why it matters

The food service industry has seen a steady rise in unemployment over the past two years, with the rate increasing from 4.9% in February 2024 to 7.9% in February 2025 and 7.1% in February 2026. This trend reflects the challenges the industry has faced, including labor shortages and the ongoing impact of the pandemic on the hospitality sector.

The details

The February 2026 unemployment rate of 7.1% in the food service and drinking places industry is nearly double the national average of 4.1%. This means that 1 in every 14 food service workers was unemployed last month. The industry also lost 29,700 jobs from January to February 2026.

  • The food service unemployment rate was 4.9% in February 2024, or 1 in 20 workers.
  • The food service unemployment rate was 7.9% in February 2025, or 1 in 13 workers.
  • The food service unemployment rate was 7.1% in February 2026, or 1 in 14 workers.

The players

Milos Eric

General Manager at OysterLink, a job platform dedicated to the hospitality industry.

OysterLink

A job platform that connects restaurants, hotels, and hospitality employers with skilled candidates across the U.S. and internationally.

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What they’re saying

“Two years ago, 1 in 20 food service workers was unemployed in February. Today it's 1 in 14. The industry added jobs over that period — but those two things can be true at the same time.”

— Milos Eric, General Manager (OysterLink)

The takeaway

The food service industry's steady rise in unemployment over the past two years, with the rate nearly doubling the national average, highlights the ongoing challenges the sector faces, including labor shortages and the pandemic's impact on the hospitality industry. As the industry continues to adapt, the ability to attract and retain skilled workers will be crucial for its recovery and long-term success.