Franchises Add Over 27,910 Jobs in June
According to the ADP National Franchise Report, the franchising industry added 27,910 jobs in June, well above the 19,160 jobs created in May. Over the past year, the sector has created over 175,000 new jobs.
“As we’ve seen time and time again, the franchise industry continues to be a job creation machine, despite all the choppy waters it must navigate,” said IFA President & CEO Steve Caldeira. “This month’s ADP National Franchise Report confirms what IFA has consistently said: our economic recovery will be led by small businesses and the franchise business model remains the most proven vehicle to grow and scale them.”
In June, restaurants, gasoline stations and auto repair, business services, accommodations, and professional services led the way. Restaurants in particular drove the job growth, creating 75 percent of June’s new jobs. As seen below, restaurants continue to make up nearly half of the franchise industry.
The June Franchise Business Index (FBI) remained unchanged at 110.0, which is near its all-time high. The decline of monthly sales of franchise-intensive industries offset continued employment gains in those industries. The May value of the FBI was revised upward +0.1 percent after incorporating revisions of the employment and spending data.
“While we are pleased that the index has remained stable, we remain concerned about the overall rate of growth in both new business formation and job creation,” said IFA President and CEO Steve Caldeira. “We believe that policymakers in Washington could help small business – franchise and non-franchise alike – by enacting pro-growth, comprehensive tax reform that eases the burden on entrepreneurs and business owners and empowers them to invest and hire.”
Among other components of the index, the small business optimism index and the small business credit availability index both showed small declines following solid gains in May. The index of the unemployment rate was unchanged.
For more information about the components and the methodology, click here.