As always, April showers brought May flowers. They also brought a lot of jobs.
You can say that again: Employers in the United States added a whopping 280,000 jobs in May, far exceeding recent average monthly totals. (See chart, below.) And while it will barely buy you a cup of watered-down coffee, hourly wages did inch up 0.3% as highly publicized minimum-wage increases from mega-retailers such as Walmart and McDonald’s started to go into effect.
Perhaps paradoxically, the rise in employment also boosted the nation’s unemployment rate slightly. But analysts say the rise (from 5.4% to 5.5%) is actually good news because more Americans are returning to the labor force and actively looking for work. In short, with more jobs to go around, those long discouraged are polishing up their resumes and once again pursuing gainful employment.
“It was a very solid report, better than I had anticipated,” said Mark Zandi, chief economist for Moody’s Analytics.
Fueling the optimism was the rise in so-called good jobs. In addition to a healthy dose of entry-level retail spots, construction and health-care jobs perked up, along with higher-paying professional services. (See more below.)
Is Dunkin’ going to start delivering?
Waltham, Mass.-based Dunkin’ Donuts may be trying to give Uber a run for its delivery money. The publicly traded eatery is exploring home delivery, its CEO, Nigel Travis, recently told CNBC.
“We’re now developing mobile ordering. We’re doing a private test. We’ll move to a more public test later this year,” Travis said. The company plans to test delivery of its coffee, doughnuts and food items.
Get ready for a fast-casual and fast-feeder competition.
Yeah, McD’s may be raising hourly wages by $1 at its corporate-run stores. But do-gooder Chipotle is going further with its perks.
Effective July 1, the fast-casual Mexican chain began to offer hourly workers paid sick leave, paid vacation and tuition reimbursement—benefits previously limited to salaried staff.
“We’re going to say that we take the same care in sourcing the employees that work in our restaurants and company as we do in going out and finding ingredients to serve in our restaurants,” said company recruitment strategy manager J.D. Cummings, according to multiple reports. The move is part of a new employee branding effort, he said.
Who Won in May?
Of the 280,000 new jobs created in May, three sectors accounted for the bulk of fresh employment. According to the U.S. Department of Labor, business services, including marketing and accounting, gained 63,000 jobs. Health care finished second with 47,000 jobs, and construction added 17,000 new jobs.
The one notable loser? Energy. Mining and drilling jobs fell by 17,000 in May—the fifth straight month of energy job losses.
McFrustrating
McDonald’s is boosting hourly wages and modifying its menu. Yet financial results from the world’s largest quick-service restaurant are still in a quagmire.
The Oak Brook, Ill.-based company’s U.S. same-store sales fell more than expected in May, declining 2.2% and continuing McDonald’s financial freefall, which began accelerating last year.
“McDonald’s has embarked on a turnaround plan to reignite our business performance,” CEO Steve Easterbrook said in a release. “Our goal is to be a modern, progressive burger company that is responsive to consumers’ evolving preferences, provides a contemporary experience for our customers and drives long-term value for our system and our shareholders.”
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