Restaurants and bars cut 7,200 jobs in October

U.S. food services and drinking places cut 7,200 payroll jobs in October, ending the modest growth recorded in September and adding to signs of a softer month for hospitality employment, according to preliminary federal data released on November 6.

The Bureau of Labor Statistics said seasonally adjusted payrolls in food services and drinking places fell to 12,383,700 in October from 12,390,900 in September. The September figure had represented a gain of 11,000 jobs from August, so the monthly change worsened by 18,200 jobs between the two reports.

The decline was limited to one month in the data released so far, and the industry remained above its year-earlier level. Compared with October 2025, food services and drinking places still had 57,200 more jobs, an increase of about 0.46%.

The October setback was not confined to restaurants and bars. The accommodation industry, which includes hotels and other lodging businesses, lost another 3,400 jobs during the month on a seasonally adjusted basis. Taken together, accommodation and food services lost 10,600 jobs in October, bringing total payrolls in the broader category to 14,304,100.

That combined total was still 53,400 jobs higher than in October 2025, showing that the annual comparison remained positive even as both major components posted monthly declines.

The figures came from the Bureau of Labor Statistics’ Employment Situation report, table B-1, which tracks nonfarm payroll employment by industry. The payroll counts are based on the agency’s establishment survey and measure jobs on employer payrolls, not distinct workers. The figures also do not represent gross hiring, meaning gains and losses reflect the net monthly change after additions and cuts across the industry.

For restaurants, bars and other food service businesses, the October decline interrupted a month of improvement in September. The reversal is notable because food services and drinking places make up the largest part of the accommodation and food services sector and are a closely watched part of the consumer economy. Employment in the industry can be sensitive to shifts in household spending, business traffic, tourism and labor costs.

Still, the new figures do not by themselves show a sustained contraction. Monthly payroll data are often revised, and one negative reading after a positive month does not establish a longer-term downturn. The latest report instead points to a weaker October after a small September increase, while leaving the industry modestly above where it stood a year earlier.

The broader accommodation and food services sector has now absorbed simultaneous monthly declines in lodging and in food services. Because both categories moved lower in October, the overall sector posted a clearer monthly retreat than restaurants alone. Even so, the year-over-year gain indicates that employment in the sector has not given up all of the ground added over the past 12 months.

The BLS described the October figures as preliminary, meaning they may be updated as additional employer reports are processed. For now, the report shows that the country’s restaurant and bar industry entered the final quarter of the year with fewer payroll jobs than it had a month earlier, while hotels and other lodging businesses also trimmed staff.