Going out of business.
The Fed’s announcement yesterday that interest rates will remain at their current rock-bottom levels until at least mid-2013 is a sure sign that the U.S. economy will remain in the toilet for another two years. But there’s a silver lining: Nation’s Restaurant News reports that there’s been a tremendous uptick in new hires in the hospitality trade. While unemployment hovers at 9.1 percent and as many as 13.9 million Americans are out of work, the restaurant business has reportedly created more than 185,000 jobs, the largest twelve-month gain since December 2007. That’s good, right? Well, sort of.
Employment numbers show that people with money are still patronizing restaurants, and said restaurants are keeping their businesses well staffed. However, while business chugs along at some, overall more and more are closing at an alarming rate. In another piece, NRN reports that restaurants are closing faster than new ones are opening. As many as 9,450 closed between April 1, 2010, and March 31, 2011. At that rate, it’s doubtful the restaurant business is going to provide any real relief for the nation’s jobless.
A look at restaurant employment trends [NRN]
U.S. restaurant count continues to fall [NRN]