Franchises Keep Outpacing Labor Markets
August was apparently a busy one for auto parts franchises.
According to the latest ADP National Jobs report, franchised auto parts dealers added 3,760 jobs last month, the highest number for the industry in the short period that the Roseland, New Jersey-based human resources firm has been publishing the monthly report. ADP, which works with Moody's Analytics on the franchise report, also publishes a closely watched report on overall private sector jobs.
The monthly franchise jobs report can be volatile from one month to the next, particularly when it comes to specific industries. For instance, gas stations and auto repair shops were among the leading hirers in June, adding 2,750 jobs. In August, they cut 1,620 jobs. Yet the sectors, taken together, show that franchises have in general been hiring at a larger growth rate than has the private sector as a whole.
That's partly because franchising is heavily used in industries that are growing rapidly at the moment. Restaurants, for instance, have led the way in hiring for franchises, and added an additional 8,740 jobs. They've also been among the most eager hirers for the economy as a whole. This may be due to the quick growth of some chains, like sandwich shops or self-serve yogurt bars.
Business services are growing fast, too, and they include franchises like temporary staffing agencies that are traditionally popular during weak economies when many industries hire only temporary workers. Add in the looming health insurance mandate and temporary jobs have become particularly popular.
"Over the past year, payroll expansion among restaurants and business services, such as temporary staffing agencies, has been the primary driver of U.S. franchise job growth," Ahu Yildirmaz, senior director of the ADP Research Institute, said in a statement. "This past month was no exception."