Conclusion: October’s employment data from the BLS shows a growth in the employment level for 20-24 year olds for the third consecutive months. This is incrementally positive for QSR stocks.
Unemployment data released this morning by the Bureau of Labor Statistics were again positive for Quick Service restaurant stocks. Management teams in quick service and casual dining have been citing unemployment levels, particularly among younger age cohorts, as a particularly strong headwind for the restaurant industry.
The most recent data from the BLS, for October, reveals that 20-24 year olds saw a year-over-year uptick in employment levels for the third consecutive month. The improvement seen in August was the first since September 2007. As the chart below clearly shows, the improvement in employment levels for 20-24 year olds appears to be growing at an increasing rate.
Howard Penney
Managing Director