Work For a Franchise: Jobs Grew by Thousands in October, ADP Says
ADP, a provider of a range of human resource, payroll, talent management and benefits administrations services, released its October issue of the ADP National Franchise Report which is distributed to the public on a monthly basis. The report showed that in the month of October there was “encouraging growth …as more than 25,000 jobs were added across a variety of [private sector] industries.”
This signifies a gain which is seen as an increase from recent months as well as above the 12-month average for the US in the franchise industry.
The job gains were divided among a few franchise industry models, with restaurants making up about 40% of new franchise jobs in the month of October, while a collection of auto-related services, including auto parts and car dealerships, as well as gas stations and auto repair shops, added a collective 20% of October’s new franchise jobs.
ADP calculates that franchise jobs made up about 20% of the Unites States economy’s total job creation in the month of October, which can be seen as a significant portion of new jobs. Out of the 114 Million non-farm private employees in the US, it is estimated that about 8 Million work within the franchise industries, and about half of them work in the restaurant industry.
Not all business in the franchise industry added jobs in October however; Rental businesses , food retailers, and leisure businesses lost over 1500 jobs in October. Some experts argue that this is due to the seasonal nature of the aforementioned and that compared to the overall level of employment in these service sectors that this could amount to noise in the statistical analysis.
The US economy has been steadily creating new jobs over the last 18 months in what is commonly described as a slow recovery from the financial crisis of 2007-2008 in which the BLS estimated over 8.5 Million jobs were lost.