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Log In / Register | Jun 24, 2017

Franchise Hiring Picks Up 18,400 Jobs in May 2017

Franchised establishments increased their hiring by a moderate 18,400 jobs. That number is a couple thousand lower than the five year monthly average but it is a quantum leap from April's 5,400 increase in hiring, one of the lowest job hiring months in years. The biggest drop in hiring was in business services, while restaurants and auto dealers were highest, according to the monthly ADP National Franchise Report.

That number comes amidst a robust increase of 253,000 private sector jobs from April to May, according to figures released Thursday by the ADP Research Institute.

In contrast, the U.S. Bureau of Labor Statistics reported this morning a weak increase of 138,000 in May, but with an unemployment rate it adjusted slightly down to now 4.3 percent, which is a rate that hasn't been matched since 2001. The Bureau notes that the labor force participation rate declined by 0.2 percentage point to 62.7 percent in May but has shown no clear trend over the past 12 months.

Small businesses increased their hiring by 83,000 jobs in May, according to a monthly survey by the payroll service firm ADP.

"May proved to be a very strong month for job growth," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, about general private sector hiring. "Professional and business services had the strongest monthly increase since 2014. This may be an indicator of broader strength in the workforce since these services are relied on by many industries."

Mark Zandi, chief economist of Moody's Analytics said, "Job growth is rip-roaring. The current pace of job growth is nearly three times the rate necessary to absorb growth in the labor force. Increasingly, businesses' number one challenge will be a shortage of labor."

 

      U.S. Added 18,400 Franchise Jobs in May, 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.