Two factors affecting New Hampshire’s hospitality industry - part 1

Earle Wason, Wason Associates Hospitality

The unemployment rate in the state has been steadily dropping since July of 2012, and as of September of this year, it was down around 3 percent. That’s good news for New Hampshire employees, but it’s having a negative impact on employers in industries like hospitality that rely on seasonal help. The decreasing pool of unemployed or underemployed New Hampshire residents means that these businesses cannot find the staff they need within the state, and must rely on workers from abroad. However, the recent restrictions put on the H-2B visa program, which allows employers to hire workers from other countries on a temporary basis, has put a strain on the pool of foreign resources as well. As Mike Somers, president and CEO of the New Hampshire Lodging and restaurant association said, “It has put quite a pinch on them.”

Help From Abroad The H-2B visa non-immigrant program permits employers to hire foreign workers to come temporarily to the United States and perform non-agricultural services or labor on a one-time, seasonal, peak load or intermittent basis. According to Somers, many businesses in the state are dependent upon foreign workers, especially in areas with a small year-round population like the Lakes Region and North Country. They’ve used the H-2B program to help keep their businesses afloat in the peak seasons, but since the federal government put a cap on how many people can apply for H-2B visas, the workers have been harder to find.

There is a statutory numerical limit, or “cap,” on the total number of foreign nationals who may be issued an H-2B visa or otherwise granted H-2B status during a fiscal year. Currently, Congress has set the H-2B cap at 66,000 nationwide per fiscal year, with 33,000 for workers who begin employment in the first half of the fiscal year (October 1 - March 31) and 33,000 for workers who begin employment in the second half of the fiscal year (April 1 - September 30). Any unused numbers from the first half of the fiscal year will be available for employers seeking to hire H-2B workers during the second half of the fiscal year. However, unused H-2B numbers from one fiscal year do not carry over into the next.

part two will appear in the March 11 edition

Earle Wason, CCIM, is president and owner of Wason Associates Hospitality Real Estate Brokerage Group, Portsmouth, N.H.