It’s Not Just White-Collar Workers – Hourly Laborers Are Struggling to Find Work Too

It’s Not Just White-Collar Workers – Hourly Laborers Are Struggling to Find Work Too

Even with a surge in wages and automation, hourly hospitality workers like our New Orleans barista face an uphill battle in the job market, as outdated resume screening systems hinder their ability to secure new roles.

The latest 2024 labor market data paints a rosy picture with decreasing unemployment rates and wage increases across industries. Yet, when you look beneath the surface, a different reality emerges, especially for hourly laborers. The mainstream narrative often centers around the struggles of white-collar, fresh-out-of-college graduates. However, this focus tends to overshadow the parallel difficulties faced by jobseekers in the service and hospitality sectors.

A report from the American Hotel and Lodging Association (AHLA) in January 2024 revealed that 67% of hotels are still understaffed, with a pronounced shortage in housekeeping. Despite the industry's efforts to attract talent by increasing wages—now averaging a record $23.91 per hour, a 27.5% jump from December 2023—filling positions remains a challenge. The hospitality industry has also pivoted to offering more flexible work arrangements and enhanced benefits like immediate health insurance, paid sick days, and PTO, but these measures haven’t entirely mitigated the high turnover rates often linked to demanding work environments and lack of recognition .

Meanwhile, the technological overhaul in the sector, aimed at operational efficiency, has introduced automation and AI-driven solutions to ease staff workload. While this approach helps reduce costs and streamline operations, it hasn’t fully alleviated the pressing issue of staffing shortages .

Consider the story of a New Orleans barista who left her coffee shop job in early June due to dwindling tips and a slow summer season. Despite her five years of experience and an impressive work history, her 12 job applications yielded no responses. She expressed frustration over applicant tracking systems (ATS), which often filter out resumes with creative designs or non-traditional formats. Her initial resume, crafted with a colorful template from Canva, was likely sidelined by these systems, which are prevalent across industries today.

This barista’s experience isn’t isolated. ATS, utilized by about 90% of Fortune 500 companies, scans resumes for specific keywords and formats to streamline hiring processes. This method, however, often backfires by phasing out 75% of candidates who don’t meet these automated criteria. Job seekers with gaps in their employment or those using unconventional resume designs are particularly disadvantaged​ (StandOut CV)​ (Columbia Career Education).

At Cantaloupe, we envision a future where hospitality workers can bypass traditional resumes. Our AI-driven first-round interview system, tailored for hospitality businesses, offers a fresh approach. Applicants can create a profile showcasing their personality, skills, and preferences. Using their voice, they respond to role-specific questions, allowing our bias-reduced AI to transcribe and analyze their input. This holistic view ensures hiring managers can quickly access relevant applicant data, fostering a more transparent and effective hiring process.

With over 40 businesses in New Orleans testing this system later this fall, we aim to ensure that qualified talent doesn’t slip through the cracks. Our goal is to provide job seekers with immediate opportunities to showcase their capabilities, helping them secure new roles swiftly. In this evolving labor landscape, it's essential that every worker, from baristas to hoteliers, gets a fair shot at employment. At Cantaloupe, we’re committed to making that a reality.