Jobless numbers are down in the majority of the metro areas, according to the Bureau of Labor Statistics. For franchise owners, this statistic might not seem all that surprising given the tremendous increase in hiring that’s taken place in recent months.
Franchise hiring has taken a noticeable shift into high gear, according to numbers by ADP, a payroll technology firm.
52,500 jobs were added in October 2015, according to the latest ADP National Franchise Report. That number was the highest it has ever been since the technology firm started reporting franchise job growth.
Restaurant Franchises Are the Answer
Digging into the statistics, it’s clear where the job growth came from.
Restaurants were the major hiring players in this year’s increase. Franchise restaurants added 39,190 jobs in October. This makes up 75% of all added franchise jobs.
In the United States, there are currently 8.7 million people employed in a job with a franchise. Franchise restaurants have hired 4.4 million of those employees, which is over half of all other industries. This growth pattern isn’t surprising given the consistent increase franchise restaurant businesses have seen over the past two years.
The Federal government has seen a general increase in hiring across restaurants with 349,000 jobs added through September in 2015. Only 21,000 jobs were added in September. ADP says that figure correlates with the heightened growth period restaurants experienced in October.
The Auto Parts Industry Contributed Too
Another noticeable source of job growth is the auto parts industry.
Auto parts dealers saw the bulk of the rest of the franchise hiring growth in October. That’s likely because of an increase in consumer spending, according to Ahu Yildimaraz, Vice President and head of the ADP Research Institute.
What This Means for Franchise Owners
Overall, the private sector added 182,000 jobs in October, according to ADP. Almost 30% of those jobs added came from franchise businesses. 20% came from franchise restaurants.
For people hesitating to get into a franchise business for fear of minimum wage changes for franchises, you might not have to worry any longer.
With the type of growth seen in October, it’s clear that the state of the franchise industry is healthy. If you’re interested in starting a restaurant business, now is the time to do so. A spike in hiring is a clear sign of growth, which means this market is prime for success.