Hot October Jobs Data Includes Franchising
Everybody’s talking about today’s blockbuster U.S. jobs report, with the Bureau of Labor Statistics reporting an additional 271,000 jobs hitting the economy in October. That puts the unemployment rate down to a clean 5 percent. That’s not the whole story, as ADP reports that U.S. franchise employment increased 52,500 during the month—nearly 20 percent of the total country’s increase!
“October marks the highest number of franchise jobs added since we began publishing the report,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “Over 90% of the growth came from Auto Parts & Dealers and Restaurants, two sectors where job growth typically signals increased consumer spending.”
Digging into the ADP data, restaurants—no surprise—led the franchise sector with 39,200 new jobs added during the month. Franchised auto parts and dealers added 10,300, while food retailers, business services and accommodations added 600, 200 and 500, respectively.
With most economists pegging total U.S. job growth for the month somewhere closer to 180,000, the numbers are excellent news for the economy. It’s also widely reported that the positive figures nearly guarantee the Federal Reserve will raise interest rates upon convening in December.
While that may be unwelcome news for some people—your househunting author included—seeing the economy heat up this far in advance of the holiday season ramp up is excellent news, with confidence that our collective holiday shopping will turn this significantly positive blip into a mini winning streak.
Click HERE for a more detailed look at ADP’s National Franchise Report.
As we head to this year’s Restaurant Finance & Development Conference in Las Vegas, and the West Coast Franchise Expo in California later in the week, we’ll keep our eyes and ears open for further anecdotes and evidence of what’s to come in the next 12 month of franchising and beyond.