Monday, April 8, 2013

Low-wage job growth: Most New Jobs are Low Wage Food Service Jobs

But they should be grateful they even have jobs, right?

April 5, 2013
The Fries-With-That Economy 

Dollars to doughnuts.

One of the more striking patterns in the recovery has been the fast clip of low-wage job growth. The best example of this is probably in food services and drinking places, which have been adding jobs for 37 consecutive months. (Employment over all has been growing for 30 consecutive months.) Over that time, eating and drinking places have added 856,200 jobs.

As a result of all this cumulative hiring, the industry accounted for almost one in 13 of all American jobs in March. That is the highest share it has held.

Source: Bureau of Labor Statistics, Haver Analytics.

The average hourly wage in food services and drinking establishments is $11.98, which is about half that for the private sector over all ($23.82 an hour).

I should note, by the way, that the National Restaurant Association says its members are still not very upbeat about the future of the economy.

And also, the trends in food services growth are still not nearly as impressive as those in health care, which has been growing nonstop in both recession and recovery. Health care employment as a share of total employment is also at its high, at 10.7 percent.