Franchises Add Over 19,000 Jobs In May
ADP, in collaboration with Moody’s Analytics, reports that in May, the franchise sector added 19,160 new jobs. Job creation fell slightly from April, when the franchise sector added over 27,000 jobs, but was still above average levels for the past year and a half. In total, the franchise sector added almost 15 percent of new private sector jobs in May, with the economy adding 134,000 total jobs according to ADP.
“This new report is further confirmation of the significant impact of the franchising industry on the U.S. economy,” said IFA President & CEO Steve Caldeira. “The results of the ADP monthly National Franchise Report will further help us demonstrate to policy makers that pro-growth policies out of Washington will help franchise businesses, which create two out of every three new private-sector jobs, to maximize their job creating potential.”
May’s franchise job gains were led by the restaurant sector, which added almost 14,000 jobs. They were followed by business services, food retailers, and accommodations, which added 2,530, 1,080, and 680 jobs respectively. This new report reinforces the findings of IFA research on the economic impact of franchising. The Franchise Business Index (FBI), an index of the economic health of the franchising industry, increased by 0.3 percent in May, driven by improved credit conditions and small business optimism. May’s improvement is the sixth straight monthly increase.
With these new jobs, the franchise sector’s total job base is 7.97 million jobs, roughly the same size as the financial services sector. As shown below, restaurant jobs make up almost half of all franchise employment. Next comes the auto parts and dealers sector, with almost 1.2 million jobs.