There is good news in the franchise industry! Last month, the U.S. added an impressive 25,000 franchise jobs, according to the ADP National Franchise Report. That’s a pretty significant jump up from October, which saw 16,970 new franchises jobs added — an increase of almost 9,000 jobs. It also exceeds the 6-month average of 22,000. All in all, more jobs is good news for franchising. But what is driving this extra growth? Well, the franchise industry should sending its thanks to the auto industry.
“Franchise jobs added increased sharply in November to a level not seen for several months,” Ahu Yildirmaz, vice president of ADP Research Institute, explained in a recent statement. “Much of the rebound came from the auto parts and dealers segment, which added about 5,000 more jobs than in October.”
The auto industry’s performance has historically been unpredictable, but it appears a boom in the last month or so is helping to drive franchise industry growth. In October of 2014, auto parts and dealer franchises only added 630 franchise jobs across the U.S. Last month, however, that jumped up to a staggering 4,740.
Less surprisingly, the restaurant industry also helped to spur growth. Typically an engine behind growth in franchise jobs, the industry added roughly 11,820 jobs last month. In addition, the accommodations industry added about 1,820 jobs, the business services industry added 1,660, food retailers added 1,060, and the real estate industry added 420.
Article by Jason Duncan, CEO/Founder of ManagerComplete.com. ManagerComplete is an online software application that helps multi-unit franchises manage operations effectively. Follow him on Twitter for latest updates.