What Does the 5% Unemployment Rate Mean for Restaurants?

While the latest 5% unemployment rate indicates the nation’s economy is strong, it means more competition for restaurants. One in every ten Americans is employed in the restaurant industry, and the improving economy means these workers have more options.

Labor trends. The surge in restaurant employment growth indicates there is a gap between job openings and available candidates. We are in one of the tightest labor markets we have seen in decades, and low unemployment and ample supply of jobs puts even more pressure on restaurant owners and operators. The competition for quality workers is very high, and the restaurant labor pool is shrinking. Check out our blog to learn tips for hiring in a tight labor market.

Labor challenges. As the U.S. economy strengthens and the unemployment rate decreases, restaurant owners and operators are likely to see recruiting and retaining employees becoming more of a challenge. Developing a solid hourly recruiting marketing strategy will give you a leg up in finding quality employees. Our innovative approach to recruiting casts a wider net to capture quality applicants. We distribute your jobs to the most popular online job boards and post to social media gaining the most exposure to your jobs.

Retaining employees. High turnover has been a constant struggle for the restaurant industry. In 2014, the National Restaurant Association showed the restaurant-and-accommodation industry had a turnover rate of 66.3%. Showing your workers who they can become within your organization is a great way to keep them loyal and reduce turnover. Devoting more resources to employee training and education can benefit you in the long run.

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