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Franchises Drop 10,600 Jobs as Rest of Economy Robustly Hires

Spring has brought two months of unpleasant surprises to the franchise sector. American franchises lost jobs yet again. Franchised establishments dropped hiring by 10,600 jobs in April, according to ADP National Franchise Report. That follows the month of March, which was the first month in over seven years to show a drop in hiring. April's dismal figure is the largest drop yet.

Restaurants, automobile dealers and hotels had the largest employment losses.

However, the economy as a whole continues to hire at a robust pace. Private sector employment increased by 204,000 jobs from March to April. That number is down from March, but up 49,000 from April of last year.

“The labor market continues to maintain a steady pace of strong job growth with little sign of a slow down,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, regarding the private-sector and small business hiring numbers. “However, as the labor pool tightens it will become increasingly difficult for employers to find skilled talent. Job gains in the high-skilled professional and business services industry accounted for more than half of all jobs added this month. The construction industry, which also relies on skilled labor, continued its six month trend of steady job gains as well.”

Small businesses of less than 50 employees increased their hiring from the month before by 62,000 jobs. The service-providing sector accounted for the lion’s share of the increase in employment.

Mark Zandi, chief economist of Moody’s Analytics, said, “Despite rising trade tensions, more volatile financial markets, and poor weather, businesses are adding a robust more than 200,000 jobs per month. At this pace, unemployment will soon be in the threes, which is rarified and risky territory, as the economy threatens to overheat.”

 


 

      U.S. Lost -10,600 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.