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Log In / Register | May 26, 2017

Franchise Hiring Lowest in Almost Five Years

National employment in the private sector was up by 177,000 jobs in April, a moderate slowdown compared to previous months. However, franchised establishments were especially hard hit. Franchise jobs increased by only 5,400 in April, according to the monthly ADP National Franchise Report. It is the worst jobs report from franchised establishments since August of 2012, when there were 5,200 hires.

Lodging, business services and grocery franchises all lost jobs. Real estate franchises gained nothing.

Regarding the general economy, Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said: "In April we saw a moderate slowdown from the strong pace of hiring in the first quarter." She added that despite the softening in private sector job creation, the growth is more than strong enough to accommodate an increasing population as the labor market nears full employment. "Looking across company sizes, mid-sized businesses showed persistent growth for the past six months," said Yildirmaz.

During the same month, small businesses, defined as firms with fewer than 50 employees, raised their hiring by a moderate 61,000 jobs.

Mark Zandi, chief economist of Moody's Analytics said, "Job growth slowed in April due to a pullback in construction and retail jobs. The softness in construction is continued payback from outsized growth during the mild winter. Brick-and-mortar retailers cut jobs in response to withering competition from online merchants."


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      U.S. Added 5,400 Franchise Jobs in April, According to ADP National Franchise Report

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email don@bluemaumau.org.