The 2018 November ADP National Employment Report has revealed franchises added 11,500 jobs to the national employment numbers.
According to the International Franchise Association (IFA), there were 745,290 franchise establishments in 2017. Franchises employ 7.881 million people across the country.
For the most part, franchises are small companies which employ one to 19 workers. Nevertheless, they contribute $425.5 billion to the GDP.
With 11,500 jobs, November delivered 1,700 fewer jobs than in October which was able to generate 13,200 jobs. However, it was much better than September when it was -5,700 jobs for the industry.
November 2018 ADP National Employment Report
The ADP report is comprised the ADP payroll data, which is made up of 411,000 US clients who employ close to 24 million workers in the country.
The overall number of new jobs in November was 179,000. This is divided into small businesses with 1 to 49 employees which generated 46,000 new jobs. Medium-sized businesses created 119,000 new jobs. Large business added 13,000 jobs to the total.
Every month franchises make a small percentage of the total number of new jobs in the report, and it is no different for November.
Franchises created 11,500 jobs. In most cases, the vast majority of franchise jobs come from the restaurant and auto parts/dealers industry.
For this month restaurants created 9,900 jobs and auto parts/dealers added 1,800 jobs. The other industries in the franchise sector which contributed jobs include food retailers at 700, business services at 600, and real estate at 100.
The accommodations segment came in at -1,500. This segment was also down for the previous two months with October coming at -2,000 and September at -1,600.
According to Mark Zandi, chief economist of Moody’s Analytics, the job market is strong but challenges could be ahead. In the press release, Zandi said, “Job growth is strong, but has likely peaked. This month’s report is free of significant weather effects and suggests slowing underlying job creation. With very tight labor markets and record unfilled positions, businesses will have an increasingly tough time adding to payrolls.”
Franchises in the US Economy
Mention a franchise to someone and the first thing that comes to their mind is a restaurant/fast food chain. But franchises cover a wide range of industries. For many first-time entrepreneurs, it is their gateway as a business owner.
Franchises offer opportunities in the automotive industry, business services, lodging, retail food, products and services, and much more. And best of all they can be had with low entry points. Some franchises start under $10,000.
Franchises are designed to provide business ownership, but what they offer is of greater value. In the long run they provide an incredible learning opportunity for new entrepreneurs.
Franchises offer structure and an established system. The system is a developed way of doing business which guides franchisees. Franchises provide ongoing assistance to ensure the success of the business.
Even if you don’t have business experience, franchises are a great way to get your feet wet. You will learn with proven management systems, marketing, advertising, inventory, HR and much more.