Strong Franchise Jobs Report, Hiring Workers Challenge Number One
After a couple of soft months, franchise hirings are back. Franchised establishments in the United States added a strong 29,500 jobs in May.
That is according to the monthly ADP National Franchise Report, which was released yesterday by ADP Research Institute in cooperation with Moody's Analytics. Restaurant hirings, which had been down last month, rebounded by a whopping 26,300 jobs. With a loss of 500 jobs in May, franchised hotels were down for their second month.
Small businesses of under 50 employees added 38,000 jobs in the month.
All private-sector employers, not just franchised or small businesses, added 178,000 jobs in May. That number is strong but down by 26,000 hires from April’s.
“The hot job market has cooled slightly as the labor market continues to tighten,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well.”
Now the economy rolls into summer hiring.
Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions. Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem.”