Franchises Hire Record Number of Jobs in October

05/11/2015
ROSELAND, NJ—Jobs in the U.S. franchise sector rose into the stars in October. In a sign that the U.S. economy continues to strengthen, franchises added an amazing 52,500 jobs, according to ADP Research Institute in conjunction with Moody's Analytics.

"October marks the highest number of franchise jobs added since we began publishing the report," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "Over 90% of the growth came from Auto Parts & Dealers and Restaurants, two sectors where job growth typically signals increased consumer spending."
Why is hiring among auto dealers and restaurants so strong?
For one, among the largest components in the franchise industry are auto dealers. And auto dealers, which saw a major jump in car sales in October, are poised for their strongest sales year ever. Car sales grew 13.6 percent last month versus October of 2014, according to data from AutoData Corp. Auto franchisees and makers sold 1.5 million cars and trucks. That puts "the U.S. market on track for potentially the strongest annual showing in history," according to the Wall Street Journal. In tandem with those strong sales numbers, auto franchisees hired 10,300 people in October, exceeded only by restaurants, which hired 39,190. That is buoyed by expected strong restaurant sales for the year. In its annual restaurant industry forecast at the beginning of this year, the National Restaurant Association forecast: "Driven by an improving economy, restaurant industry sales are expected to hit a record high of $709.2 billion in 2015."
U.S. small business establishments, businesses with fewer than 50 employees, increased their hiring by 90,000 in October. This is nearly double ADP's revised figure of 47,000 jobs for September that small businesses created. Contrast that with how the overall economy is doing. Total private sector employment increased by a somewhat soft 182,000 jobs during the month, according to the payroll and human resource service firm. Economists prefer hiring to reach the 200,000 mark to show economic gusto, which is what September's private sector employment number was.
Yildirmaz reminds us of the buoyancy of October's small business numbers. "Small businesses rebounded to account for almost half the jobs added," she states.
At the same time, large firms have struggled, with energy and manufacturing sectors actually losing jobs. Oil workers have suffered as oil rigs throughout the country have shut down. "The cause is the plunging price of a barrel of oil," writes the NY Times.
"Large companies continue to be negatively impacted by trends such as low oil prices and the strong dollar driving weaker exports," comments Yildirmaz. The stronger dollar for the franchise industry means that an international franchisee can buy less of American goods or afford franchises from American multinational franchisors. "On the other hand, small businesses can benefit from these same trends," adds the economist.

By:http://www.bluemaumau.org/14764/franchises_hire_record_number_jobs_october_2015?utm_source=twitterfeed&utm_medium=linkedin

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