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Historical Franchise Job Gains By Sector – Restaurants, Auto, Accommodations, and Business Services Lead The Way

The newest economic dataset from ADP, developed in collaboration with Moody’s Analytics, shows the franchise industry’s tremendous impact on the current economic recovery. In total, the franchise sector has added 320,000 jobs since April 2011 and almost 150,000 jobs in the past 12 months. However, job gains vary by sector. Over the past couple of years, five sectors stand out as the strongest job creators – auto parts and dealers, restaurants, accommodations, business services, and gas stations and auto repair. These divisions of the franchise industry were collectively responsible for 277,000 jobs since April 2011, and 128,000 over the past 12 months. Below is analysis of growth in each industry with charts.

Auto Parts and Dealers

A key part of the U.S. economy’s recovery has been the strong performance of the auto industry. The auto parts and dealers sector has added 73,000 jobs since April 2011 and 17,000 jobs over the past 12 months. This division’s strongest month was April 2012, when the sector added 12,480 jobs. On average, the sector has added 2,800 jobs since April 2011, but its strongest gains have come during late winter to mid-summer.

Restaurants

With over 4 million jobs, the restaurant sector is the largest sector in franchising. Since April 2011, the sector has added 134,000 jobs, and a further 82,000 in the past 12 months. The sector has had a very strong first half of 2013, with roughly 44,000 jobs created already this year. On average, the sector has added 5,160 jobs per month since April 2011.

Accommodations

Since April 2011, the accommodations sector has added 20,500 franchise jobs. In the past year, the accommodations sector added 6,600 new jobs. On average, the sector adds 789 jobs per month.

Business Services

The franchise business service sector has created 10 percent of all new franchise jobs since April 2011, with a monthly average of 1,300 new jobs per month. In 2013, the sector has been especially strong, creating 2,200 new jobs per month on average.

Gas Station And Auto Repair

Finally, the gas station and auto repair sector has added 3,093 new jobs since April 2011, or 5.1 percent of all new franchise jobs. However, since 2013, the sector has only created 654 new jobs. From January to March, the sector shrank. More robust economic conditions would see this sector, which accounts for over 400,000 jobs nationwide, return to the growth it saw in 2012.

Total Franchise Jobs By Sector

These five sectors saw substantial growth over the past two years. However, all franchise sectors have expanded since April 2011. The chart below outlines progress across all lines of business.

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