Recession Upends Seasonal Job Market in Beach Towns

REHOBOTH BEACH, Del. -- The approach of warmer weather is brightening the jobs picture for people struggling in Delaware's coastal tourist towns, though seasonal European workers could find themselves frozen out this summer.

Dewey and Rehoboth Beaches, known as affordable vacation hotspots, hope to benefit from a nation in the midst of trading down this year. "It looks like it's going to be a good season," said Sharon Palmer, vice president and manager of rental operations at Coldwell Banker Resort Realty in Rehoboth.

Already, a number of businesses said their season indicators -- President's Day, St. Patrick's Day and even Valentine's Day -- were more successful than they were last year. Meanwhile, rental properties at Coldwell are about on par with last year, the best in recent memory, Ms. Palmer said.

Nationwide, after a steep drop in tourism last fall, the U.S. Travel Association's Traveler Sentiment Index rose to 90.2 in February, up 12 points since the survey was last taken in October.

More than seven million people visit Rehoboth and Dewey each year. Dewey's usual 300-person population balloons to more than 200,000 on a weekend in July or August, many of them lured by its younger, party-hopping crowd. Rehoboth is more family-oriented, touting activities like outlet shopping and miniature golf.

This year, employers are finding that locals -- college and high-school students, teachers with the summer off and retirees -- are quickly flocking to fill summer positions. Sussex County, where both beaches are located, had an 8.9% unemployment rate in February, up from 5% a year ago.

In Rehoboth, Dogfish Head Brewery and Eats held two job fairs earlier this month to give locals a chance to fill about two dozen positions as cooks, hosts and servers. Between both, about 30 candidates showed up.

Margie Booth, 23 years old, one of the applicants, will likely be offered a job as a server. The Wilmington University senior already works at nearby Nicola Pizza, but wanted a second job to take advantage of the season.

"Waiting around here is definitely one of the top jobs," Ms. Booth said. "Having tourists come in, it's a jackpot." She'll use the money to pay for school and rent.

For Kizzie Lisenby, 28, it was an opportunity to ditch her $10.50-an-hour motel job and trade up for something more lucrative, hopefully, to support herself and her two daughters. Although the motel was year-round, her hours and income suffered in the winter.

Dogfish Head will likely offer her a job starting between $8 and $9 an hour, which is less money than she earns now but makes strategic sense, because assistant manager John Ludwig said he is likely to keep Ms. Lisenby year-round. Eventually, she will qualify for full health benefits and life insurance.

While this all augurs for good news for locals, it also means that by the time job applications from foreigners and out-of-towners start rolling in -- often 50 at a time in the weeks before Memorial Day -- the restaurant may be fully staffed.

Nicola Pizza in Rehoboth frequently hires foreign students for the summer. In fact, two Russians were lined up this year -- until existing workers asked for their hours to be increased.

"There's a very good chance that the two guys I promised a job, that...I won't be hiring them," said Nick Caggiano Jr., the vice president of the pizzeria.

The foreign workers in beach towns primarily use seasonal J-1 visas, intended for college students and trainees who are sponsored by companies or organizations in the U.S. This year, the State Department asked large sponsor organizations to voluntarily reduce their numbers.

Seasonal Staffing Solutions, a New Jersey-based company that sponsors such workers, is expecting a 20% to 40% drop in the number of workers to be placed in the U.S. this year. The company placed about 1,000 foreigners last summer, mainly along the East Coast.

"I don't think we'll be able to get close to that number this year," said Vadim Misnik, a partner there.

More than 2,000 foreign workers flood the area in an average summer, said Carol Everhart, the chief executive and president of the Rehoboth Beach-Dewey Beach Chamber of Commerce. This year, fewer than 1,500 are expected. In the past, their presence was as ubiqitous as umbrellas on the beach. Churches organize meals for the foreigners, drawing 150 to 200 workers four days a week, and coordinate trips to New York City and Washington, D.C.

Despite the anticipation of a strong season, the recession still stings here. The Dewey Beach Patrol's ranks will be 12 thinner this year as it reconciles summer hiring with the city's budget cuts, said Capt. Todd Fritchman. Dewey, which has no property tax, is operating with about a $600,000 deficit after its sources of income -- transfer taxes on property titles and building permits -- were hit hard by the downturn.

Thirty-five applicants tried out for five lifeguard spots. The tryouts for new guards -- consisting of sprinting, swimming and rescue technique -- came to a close last weekend. All five spots went to applicants from the Mid-Atlantic region.

Locals such as J.T. Diguglielmo, a 16-year-old high-school student, will take up the summer gigs. In addition to working as a lifeguard, Mr. Diguglielmo plans to keep the busboy position he already has. He hopes to use his summer earnings to fulfill a teenage dream that hasn't yet succumbed to the recession: buying his first car.