A 'McJob' Anyone? McDonald's to Hire 50,000

McDonald's, the worlds largest fast-food chain, said it plans to hire 50,000 new employees in the U.S. starting April 19, prompting speculations whether or not it is an indication of an improving economy.  

The Oak Brook-based company said last week that it would commission the new store-level hires to its nearly 14,000 U.S. restaurants, which currently employ an estimated 400,000 people. 

For Elizabeth Harris and Yousuf Khan, both students at Oakton Community College (OCC) Skokie campus, the announcement is welcome news.

Harris, a 22-year-old from Evanston, said that while employment at McDonald's is not on top of her list, she sees the large-scale hiring as a positive sign in a bleak job market. 

"I wouldn't rule it [applying] out," Harris told Patch. "I wouldn't probably feel great about working there, but a job is a job and in this economy, you take what you can get."

Khan, a 26-year-old Skokie resident, said that even as he pursues his studies in filmmaking, he would consider working at McDonald's.

"Getting a job is better than not having a job," Khan said. "I wouldn't mind. I would love to have a steady paycheck. You gotta pay your bills somehow."

Sue Hensley, senior vice president of the National Restaurant Association, said McDonald's announcement is a reflection of the restaurant industry's improved outlook 

"We have seen some growing confidence in industry trends and in hiring in the restaurant industry. I think that this announcement by McDonald's is one more indication of that strengthening," Hensley said in an interview. 

Overall, the restaurant industry is adding more jobs at a faster rate than the rest of the economy, said Hensley, who predicted a 3.6 percent growth in sales over the 2010 figures. 

According to the association's 2011 Restaurant Industry Forecast, sales are expected to reach a record $604 billion, a positive growth after three years of decline. Of that amount, Illinois is expected to earn $19.9 billion.

The restaurant industry is the second largest private sector employer in the U.S. There are 960,000 restaurants nationwide employing nearly 13 million workers. With summer approaching, restaurants are expected to add more workers, Hensley said from Washington, D.C. 

A branding expert from the top-rated Kellogg Graduate School of Management at Northwestern University in Evanston said that given the trend, McDonald's "is smart to get ahead of what looks like an improving jobs environment."

"It's a bold announcement, and I think it's a very positive announcement for McDonald's," said Tim Calkins, a professor at the business school. "People are concerned about jobs and McDonald's is stepping forward with a very bold statement about hiring."

While it has been posting consistent growth during the last eight years, even during the "Great Recession" of 2009 and 2010, entry-level jobs at McDonald's are still perceived as "dead-end." Thus new graduates are less likely to apply for the "McJobs" positions.

McDonald's is aiming to change that perception with the announcement, which is accompanied by an advertising and public relations campaign leading up to the April 19 hirings, the Chicago Tribune reported.

Still, Harris, the OCC student, said there's a certain "stigma" working at McDonald's, even as she acknowledged that the job openings are a plus to the company's image.

"It's a lot of years of trash talking McDonald's. It's gonna take a while for them [the public] to come around," said Harris, who once worked at Starbucks.  

For Harris' fellow student Khan, who once worked at his family-owned Jimmy John's franchise, workers at McDonald's should not be viewed differently.

"They're making an honest buck," he said. "So many people have lost jobs. So it's a pretty good thing to do."

Rebel Cole, a finance expert who teaches at De Paul University's Kellstadt Graduate School of Business, said that while the news is a good thing for McDonald's, it does not automatically mean the overall economy is improving.

Cole noted that while the latest figures show the U.S. economy added 210,000 people to the workforce, several other economic indicators, such as wages and rising inflation, suggest a deepening problem.

"I think we're heading in for a double-dip. I don't think things are getting better at all," said Cole.

At least at McDonald's, the prospects are brighter for job applicants.