June Jobs Report Bodes Well For Foodservice

It’s taken six years, but the employment situation in the U.S. economy is finally beginning to improve. And that bodes well for foodservice and the foodservice equipment and supplies market. The U.S. Bureau of Labor Statistics reported July 3 that the nonfarm payroll employment increased by 288,000 in June with widespread gains across almost all job sectors. The unemployment rate dropped to 6.1% from 6.3% in May. The BLS also revised upward jobs growth in April and May by 29,000. Job gains have now exceeded 200,000 a month for six consecutive months.

Analysts were pleased that both the number of long-term unemployed and the number of discouraged workers decreased. Average hourly earnings and earnings for production and nonsupervisory employees also increased.

Leisure and hospitality added 39,000 jobs with 33,000 of those coming from foodservice and drinking places. Foodservice has added 314,000 jobs during the past year. Professional and business services saw an increase of 67,000 jobs in June.

Employment growth is a key driver of foodservice sales. The good jobs news helps boost consumer confidence, which also is critical to foodservice spending.