For the third quarter of 2008, the People Report Workforce Index registered its first increase in the past 4 quarters. The overall index value rose across all segments except Casual Dining, with the greatest increase occurring for Quick Service and Fast Casual/ Family Dining segments.
Although during Q2 08, approximately 200,000 national jobs were lost according to the Bureau of Labor Statistics, the food service industry introduced 42,000 new jobs. Job growth continues to be expected throughout all industry segments, however, the expectations have softened when compared with the previous 4 quarters, especially in the upscale casual/fine dining segment.
The employment levels component of the Workforce Index reversed course and increased for the quarter. National Upscale Casual and Fine Dining chains followed suit with the rest of the industry posting a stronger quarter for headcounts in Q3 08.
The most recent results from the People Report National Independent Operator Report demonstrate a quarter in which concepts had more managers employed than the previous quarter. Among hourly employees, 42% of concepts had more on payroll this quarter when compared to the previous quarter.
Looking at results from a more narrow set of companies, the People Report Independent Operator Report – NYC shows a third of concepts had more management headcount than the previous quarter. Among the hourly employees in the NYC concepts, 45% of concepts had more on payroll than the previous quarter.
The vacancy index value for the Upscale Casual/ Fine Dining segment evidences a softened impact when it comes to vacancies than what is being reported by the rest of the industry.
The turnover component of the WFI continues to decline in all industry segments except Quick Service. This indicates annual turnover rates dropping at a faster pace than the previous quarter for both hourly employees and managers.
On the hourly employee front there was a reported decrease in rolling annual turnover rates when comparing People Report Independent Operator Report – NYC quarter to quarter results. Comparing the same set of concepts, 70% of the participants saw a decrease in rolling hourly turnover. Comparing same-sets of Management Turnover Rates, over half of the participating concepts continue to report lower annual management turnover rates this quarter.