TALLAHASSEE, Fla. – Florida’s tourism and hospitality industry employs 1.5 million people, but a new study from Florida State University suggests the industry is falling behind when it comes to wages.
Dr. Tarik Dogru’s first job was as a busboy in Turkey. He’s spent much of the last two years studying more than a decade's worth of national wage data. His conclusion: Hospitality paychecks aren’t keeping pace with the rest of the economy.
“When overall wages in the economy go up by 1%, or $1, the hospitality wages only go up by 0.8%, or 81 cents," Dogru said.
The Ph.D. researcher said paying less in the short run makes for bigger profits.
“But in the long run it makes it difficult for them to retain and attract people," Dogru said.
What the study doesn’t take into account is tipping. That’s because keeping track of tips is nearly impossible. In cities like New York, Chicago or Seattle, attempts to phase out tipping have failed.
“So it’s a great place to start,” said Jerry Parrish, the chief economist for the Florida Chamber.
Parrish said hospitality jobs pay better in Florida than most other states.
“In leisure and hospitality, Florida workers make $1,800 more than the average worker in the U.S., and they don’t pay state income tax here," Parrish said. “In some cases, they certainly are (good jobs in Florida). Even more importantly, is often it's a path to a good job.”
And the one thing the researcher and economist agree upon -- hospitality jobs are usually temporary and, just like Dogru experienced, often a first job.
Parrish said two out of five people who start in hospitality end up with jobs making six figures, in part because of the skills they learn.