It comes as no surprise that the labor market in the Atlantic City casino industry continues its slump. The number of employees declined double digits for the fourth consecutive month in October compared to the pre-Covid 2019.
The nine casinos employed 22,220 in October, according to the state Division of Gaming Enforcement, or 4,670 less that the same month last year, a drop of 17 percent. Even when the casinos reopened in July, they did so with capacity and other constraints cutting back on the labor requirements, according to the Press of Atlantic City.
“It’s getting tougher and tougher. These restrictions make a big difference,” said Steve Callender, president of the Casino Association of New Jersey and regional president for Caesars Entertainment Inc.
And with a surge in Covid-19 cases in New Jersey, fewer people expect to visit, which will impact employment through the winter.
October full time employment fell 21 percent while part-time work dropped 42 percent. At the same time, seasonal, on-call and furloughed workers increased 22 percent.
“The industry is hurting globally,” said Robert Ambrose, a former Atlantic City casino marketing executive and current associate professor of casino management at multiple schools. “The labor numbers we see are a direct reflection of seasonal staff reductions, pandemic influencers, such as mandated restrictions on dining, capacity and events, and a lack of discretionary income from those that are unemployed.”
The industry’s bright spot of online gaming and sports betting requires far fewer employees than brick-and-mortar casinos, he said.
“Casino win (revenue from slot machines and table games) is down and revenue from all amenities have been impacted,” Ambrose said, adding the industry slump may continue for a considerable amount of time.
Staff reductions contribute to balancing revenue declines, said Jane Bokunewicz, coordinator of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at Stockton University.
“The pandemic has simultaneously suppressed consumer demand and increased the cost of doing business because of safety precautions to protect employees and guests, forcing casino operators to scale back other expenses wherever possible,” she said.
Even those gainfully employed face a reduction in hours and wages, Callender said.
“The people that are working, a lot of them aren’t working 40 hours. They’re getting trimmed here and there, and it’s a difficult situation for them.”
And a return to normal won’t happen until the pandemic is under control either through treatments, a vaccine or both.
