Franchising Posts Big Job Gain In November
Written by Tim Morral
The franchise industry added 25,000 jobs in November, posting the largest hiring increase in months--thanks to a significant rebound in the auto parts and dealers sector.
Franchise hiring is an indicator of the strength of the U.S. small business economy and in November, franchising reported the highest job gains the industry has seen in several months.
Recently released data from payroll provider ADP showed that the franchise sector added 25,000 jobs in November, a substantial increase from the 16,970 new jobs reported in October. The November spike also represented the highest gains the franchising industry has experienced since a peak of 33,330 new jobs in June 2014.
Rebound in Auto Parts and Dealers
Much of the November increase in hiring was attributable to the auto parts and dealers segment, a sector that has reported lower than average hiring numbers over the previous months.
"Franchise jobs added increased sharply in November to a level not seen for several months," said Ahu Yildirmaz, vice president at the ADP Research Institute. "Much of the rebound came from the Auto Parts and Dealers segment which added about 5,000 more jobs than in October."
In October, the auto parts and dealers sector reported just 630 additional jobs. The November gain of 5,740 jobs may have been at attempt to make up for slow growth throughout the fall. Regardless, the November gain was more in line with the segment's six-month average increase of 4,740 new jobs per month.
In terms of overall gains, the franchise restaurant sector led the way, adding 11,820 jobs in November, slightly below the segment's six-month average increase of 12,180 jobs. At the other end of the spectrum, education franchises reported the largest loss, reducing employment by 440 jobs.
What It Means for Franchise Business Owners
The November job report is an indicator of continued strength in the franchise sector. However, franchise business owners shouldn't necessarily use these numbers to green light additional hiring. Poor hiring decisions are some of the most common franchising mistakes and can seriously impact your bottom line in the months ahead.
Instead, it's important to base hiring decisions on current job trends in your specific franchise sector as well as the staffing needs of individual franchise locations.
To view breakdowns by franchise segment, visit the Entrepreneur.com website.
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