November a Good Month for Franchise Jobs

ROSELAND, N.J. – Jobs increased 25,000 in November by franchise establishments. That level of recruiting has not been reached since June's 33,330 hirings.

Franchised establishments recruited at a monthly growth rate of 0.3 percent. That rate again exceeded their independent small business brethren's growth pace over the preceding month of 0.2 percent (see table below) but that grew a total of 101,000 jobs in the month, according to payroll service  provider ADP in conjunction with Moody's Analytics.

Small business employers accounted for 101,000 of those jobs, while total non-farm private employment in the United States increased 208,000 in November, according to payroll service provider ADP. 

“Small businesses continued to drive job gains, adding almost half the total for the month, said Carlos Rodriguez, president and chief executive officer of ADP.

With franchised establishments, manufacturing grew the highest rate at 1 percent over the preceding month. This is a small category that includes bakeries that manufacture and sell hot doughnuts during cool Fall days as well as fast sign shops. As far as sheer bulk numbers, restaurants as well as auto parts and dealers grew the most for the month, with 11,820 and 5,740 jobs respectively. Education center franchises bucked the positive trend and actually fell in their hirings for November.

"Franchise jobs added increased sharply in November to a level not seen for several months," said Ahu Yildirmaz, vice president and head of 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."

The table presents U.S. franchise employment growth over time, measuring current month growth, year-over-year changes, and the average monthly growth rate over the past 12 months. This chart also reflects changes in small business employment to help illustrate the correlation between small businesses overall and franchises.