Franchise Jobs Cool in April

Masarati Manhatten Showroom
A Masarati car dealership in Manhattan. Car dealerships are a hot bed of hiring. Photo/psteinberg

ROSELAND, N.J.—In a sign that the economy cooled in April, private-sector franchise jobs in the United States increased by only 15,600 during the month. Franchise jobs had an unusually soft month in April, matching the same monthly growth rate of small business hirings of 0.2%. Franchise hirings typically exceed small business monthly rates.

The worst hit franchise sector in jobs, restaurants, lost 11,470 jobs in April. However, auto dealerships, which often have elements of not only product distribution franchises but also a franchisor that oversees components of a dealer's business format, hired 20,190 jobs during the month.

"Franchise job gains in April were the lowest since July of last year," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "In a tale of two industries, Auto Parts and Dealers experienced a surge in hiring while Restaurants shed a large number of jobs," she added.

Total small businesses, which are defined as firms with under 50 employees, hired individuals for 94,000 jobs, according to payroll services provider ADP in collaboration with Moody's Analytics,

Chart and data provided by ADPIn the larger economy, total nonfarm private employment in the United States increased by 169,000 jobs in April, according to researcher ADP. The gains were under 200,000 jobs for the second month in a row. Companies with 500 or more employees showed the lowest hiring growth. Manufacturers lost 10,000 jobs.

Chief economist of Moody's Analytics Mark Zandi observed, "Fallout from the collapse of oil prices and the surging value of the dollar are weighing on job creation. Employment in the energy sector and manufacturing is declining. However, this should prove temporary and job growth will reaccelerate this summer."

U.S. Added 16,000 Franchise Jobs in April, According to ADP National Franchise Report
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