Total nonfarm payroll employment rose by 128,000 in October, and the unemployment rate was little changed at 3.6 percent, reported the U.S. Bureau of Labor Statistics.
Total nonfarm payroll employment increased by 128,000 in October. Job growth has averaged 167,000 per month thus far in 2019, compared with an average monthly gain of 223,000 in 2018. In October, notable job gains occurred in food services and drinking places.
In October, food services and drinking places added 48,000 jobs. Job growth in the industry has averaged 38,000 over the past three months, compared with an average monthly gain of 16,000 in the first seven months of 2019. The restaurant industry is projected to employ 15.3 million people in 2019 — about one in 10 working Americans, reported National Restaurant Association.
Food services and drinking places consist of these four groups: full-service restaurants, limited-service eating places, special food services and drinking places.
There was a slip slightly in consumer confidence. The Conference Board’s consumer confidence index fell for the third consecutive month, from an upwardly revised figure of 126.3 in September to 125.9 in October. But the holiday season is upon us. Holiday sales always bring in heavy foot traffic to nearby malls. This holiday season has six fewer days between Thanksgiving and Christmas, which has retailers such as Walmart pushing out sales and promotions earlier this year. Analysts call this “Christmas Creep,” which at Walmart has begun before Halloween.
And to accommodate these expected masses of people, retailers like Target has plans to spend an additional $50 million to increase training and hours and employees during the season. There will be more employees on duty each day during the shortened season.
Other reports on holiday spending indicate healthy consumer demand despite a cautious sentiment about the economy. The National Retail Federation reported consumers will spend an average of $1,047.83 this holiday season, up 4 percent from a year ago.
Shoppers between the ages of 35 and 44 will spend more, at an average of $1,159. The recent overall forecast estimated holiday retail sales in November and December will be up between 3.8 percent and 4.2 percent over 2018 for a total of between $727.9 billion and $730.7 billion.
“Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season,” said Matthew Shay, NRF president and CEO. “Retailers are fully prepared to meet the needs of holiday shoppers looking for that perfect mix of sales, quality and selection.”
Deloitte predicts holiday retail sales per household will be $1,496. The survey found the bulk of spending ($596) will go for experiences and celebrations, including entertainment and socializing away from home. Gifts and gift cards make up the second-largest spending items at $511. The remaining $389 will come from non-gift clothing and home/holiday decor.
With the amazing sales come hungry bellies. Restaurants will be packed with these hungry shoppers.
In 2019, Americans will spend 12 percent of their incomes on food — and restaurants alone represent 25 percent of the family food dollar. U.S. restaurant industry sales will reach a record high of $863 billion this year, up 3.6 percent over last year, according to a report released by the National Restaurant Association. About four in 10 consumers say restaurants are an essential part of their lifestyle.
In most recent data, U.S. consumers visited restaurants this July at the same pace they did last July, and consumer spending was up 3 percent compared to a year ago, according to the NPD Group, a market research firm. Total U.S. traffic volume for commercial restaurants in the year ending June 30 was 61 billion visits.
On the digital side, sales are on pace to reach 30 percent of total sales for U.S. restaurants by 2025. And 60 percent of U.S. consumers order delivery or takeout once a week. Overall, digital ordering and delivery has grown 300 percent faster than dine-in traffic since 2014.
