Restaurants Continue To Lead Franchise Hiring
Restaurants keep hiring. Franchises added more jobs in June, according to the ADP National Franchise Report, and the restaurant industry by far led the way, representing three out of every four new hires that month.
The 27,910 jobs that franchises added last month was higher than the 19,160 jobs they added in May, and demonstrates that industries that use franchising as a business model have been enjoying some success. Ten of the 16 sectors that ADP tracks had employment growth last month. Lending is more readily available, which is enabling more franchises to open their doors. And more franchises are so cheap now that many franchisees don't even need loans.
The ADP Research Institute, in collaboration with Moody's Analytics, publishes the monthly National Franchise Report. The report comes from ADP payroll data, which represents 15,000 franchisors and franchisees that employ more than 1 million workers. ADP is an HR firm based in Roseland, New Jersey. This is its second report.
As the largest industry that uses franchising, and a notably labor intensive one at that, restaurants will naturally lead employment growth most months, but last month's performance was particularly strong, as restaurants added 21,010 jobs for the month. By comparison, gas stations and auto repair shops were the next best performing sector, adding 2,750 jobs. Business services added 1,360 jobs, and professional services added 1,280.
The restaurant industry has been in a growth mode lately, adding new jobs in spite of a relatively weak economy and ton of competition. Yet, fueled by an improving lending environment, restaurants have been able to expand, and there are a growing number of concepts that have been able to expand.