It's no surprise that young workers play a crucial role in
meeting the labor needs of the restaurant industry. According
to our friends at the National Restaurant Association, over one in
four adults got their first job experience in a restaurant.
However, the labor force participation rate for younger workers has
been experiencing a steady decline over the past decade. In
recent years these individuals have, in large measure, voluntarily
opted out of the workforce. For those individuals who are
looking for jobs, more and more are finding themselves on the
sidelines as unemployment skyrockets and job creation remains
scarce.
A proliferation of young workers is especially vital to Quick
Service restaurants. While this industry segment has fared
better than many during the economic slowdown of recent years,
younger workers continue to feel the squeeze of a buyer's market
when it comes to labor. Let's take a look at how these
workers have fared in the job market in recent years…
According to our research, 60% of hourly workers in Quick Service
restaurants are aged 25 or less.
At the start of 2008, 54% of newly hired entry-level managers at
fast food restaurants were under 25. In the third quarter of
2009, that number had dropped to 46%. Since the start of
2008, unemployment rates for workers in this age
range have soared and the hourly turnover rate for Quick Service
has plummeted nearly 30% in the past twelve months.
As a result, the market is being flooded with experienced and able
workers. We've seen the tenure level of terminated workers
for the industry as a whole rise 20% during that time and on the
hiring side, the experience level of newly hired assistant managers
is 12% higher than it was at the start of 2008.
While young workers are a key component of the foodservice labor
force there are currently a) fewer job openings, b) a supply of
older, experienced workers, and c) public policy concerns which
discourage hiring inexperienced workers (minimum wage hikes and the
looming prospect of card check in particular). You add these
up and it is a recipe for high unemployment for young,
inexperienced workers.