News Source
EXCERPT:
Los Angeles’ hotel industry is losing jobs at its fastest pace in a decade outside of the pandemic, raising fresh concerns about the economic fallout from some of the most aggressive minimum wage mandates in the nation.
A new analysis of federal labor data found that Los Angeles County hotels and motels saw their workforce shrink by 1.7% in December 2025 compared to the same month a year earlier, as businesses grappled with rapidly rising labor costs imposed by city and county officials.
The decline comes as Los Angeles prepares to host a series of major international events, including the 2028 Summer Olympics, while hotel operators warn that mounting costs are threatening the industry’s ability to expand and meet future demand.
Wage Mandates Coincide with Sharp Employment Decline
According to an analysis by the Employment Policies Institute (EPI) of newly released U.S. Bureau of Labor Statistics data, the contraction represents the steepest year-over-year decline in Los Angeles County’s hotel industry in a decade, excluding pandemic-related disruptions.
The losses followed a series of government-mandated wage increases.
