Sabree Beneshore, a marketplace reporter specializing in the restaurant industry, joins to discuss the latest job churn trends across the U.S. Explore how job turnover differs dramatically between the West and Northeast. Plus, hear about TikTok Shop's skyrocketing sales on Black Friday and the challenges facing restaurant owners amid rising debt and shifting consumer preferences. The conversation wraps up with the urgent demand for electric vehicle chargers in multi-family buildings, revealing the evolving landscape of both labor and commerce.
High job churn signals a dynamic labor market, with workers seeking positions that better align with their skills and preferences.
The restaurant industry faces significant challenges, including increasing bankruptcies and shifting consumer preferences, exacerbating pre-existing financial strains.
Deep dives
Job Market Churn in the Western U.S.
Many workers are currently experiencing churn in the job market, which refers to the phenomenon of individuals leaving their jobs for better opportunities. For example, Laura McClellan, a transportation planner in Utah, recently transitioned from a government position to a regional transit agency, reflecting the robust demand for transportation planners in a rapidly growing state. Economist Christine McDaniel explains that a high level of churn is generally positive, indicating that workers are finding roles that better suit their skills and desires. However, the current level of churn is not as intense as it was in previous years, suggesting a shift towards a more stable job market and a reduction in the extreme volatility seen during the pandemic period.
Impact of Retail Sales on the Economy
The holiday shopping season has witnessed record online sales, reportedly around $11 billion, according to Adobe Analytics, highlighting the increasing trend of consumer preference for online purchases. Retail store owners, like Annie Lang Hartman from Michigan, reported fluctuations in in-store sales due to weather disruptions but remained optimistic about holiday sales as marketing efforts and inventory were ramped up. In-person shopping experiences are still important, as evidenced by the enthusiasm surrounding Black Friday deals, which can bring significant customer traffic, though challenges persist. The growth of social commerce through apps like TikTok Shop also indicates a shift in how consumers are engaging with retail, adding complexity to the market landscape.
Challenges Facing the Restaurant Industry
The restaurant industry has been significantly impacted by a wave of bankruptcies, with numerous chains succumbing to pre-existing debts exacerbated by the pandemic. Many establishments, like TGI Fridays and Red Lobster, struggled to cope with rising costs and diminished customer foot traffic while facing pressure to innovate and adapt their business models. For instance, some restaurants have had to pivot towards new strategies, holding events and adapting offerings, although ongoing adaptations can lead to fatigue among owners. Experts forecast that the trend of restaurant bankruptcies may continue into the next couple of years as the industry seeks to stabilize and recover from recent upheavals.
About 3.3 million people quit their jobs in October, slightly more than in September. More quits can signal a strong labor market, but quit rates vary across the country. In this episode, why job churn is strong out West and falling in the Northeast. Plus: TikTok Shop did over $100 million in sales on Black Friday weekend, renters want electric vehicle chargers and the restaurant industry struggles with debt and shifting preferences.
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