http://www.bloomberg.com/news/2014-10-03/food-economy-restaurants-supermarkets-fuel-job-growth.html
U.S economy has definitely changed its source of income from military to restaurants and supermarkets. These two areas are one of the main reasons for the U.S recovery. According to the Bureau of Labor Statistics, 20,400 more jobs have been added in September. This indeed did have a good impact on the unemployment rate, pushing it down to a six year lo of 5.9 percent.
Famous companies like Kroger, Dominos and Papa Johns published to increase their labor force too. Although all these factors seem like a good news, there is a bit of a downfall to it. Since Americans working at restaurants and supermarkets are not surely "full time employees", they are getting paid $12.49 per hour, making the wage rate sluggish.
Besides that, looking in the long run, their appetite of hiring is still a signal of faith, as claimed by Dominos Chief Executive Officer J.Patrick Doyle.
Many of the articles posted on this blog seem to focus on the wage rate's stagnation/slow rise. This article brings up a good point in noting that a lot of this could be due to the TYPES of jobs becoming available, something I, for one, hadn't really thought about or looked into much.
ReplyDeleteIt is interesting that Kroger is one of the companies which has publicly stated they will increase their labor force. While Kroger is a large corporation, it is still in the Grocery Industry which do not have very high profit margins. The grocer will be a company to watch in the long run to see if increasing the labor force is a feasible over an extended period of time.
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