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According to the ADP National Franchise Report, the franchising industry added 27,910 jobs in June, well above the 19,160 jobs created in May. This report from ADP and Moody Analytics utilizes actual transaction data to measure new private-sector franchise job creation.
"As we've seen time and time again, the franchise industry continues to be a job creation machine, despite all the choppy waters it must navigate," said Steve Caldeira, IFA president and CEO. "This month's ADP National Franchise Report confirms what IFA has consistently said: our economic recovery will be led by small businesses and the franchise business model remains the most proven vehicle to grow and scale them."
The June Franchise Business Index (FBI), an index of the economic health of the franchising industry developed by IHS Global Insight on behalf of the IFA Educational Foundation, was also released this week and remains unchanged from May at 110.0. The decline of monthly sales of franchise-intensive industries offset continued employment gains in those industries. The May value of the FBI was revised upward 0.1 percent after incorporating revisions of the employment and spending data.
"While we are pleased that the index has remained stable, we remain concerned about the overall rate of growth in both new business formation and job creation," Caldeira added. "We believe that policymakers in Washington could help small businesses — both franchised and non-franchised — by enacting pro-growth, comprehensive tax reform that eases the burden on entrepreneurs and business owners and empowers them to invest and hire."
Small business optimism and business credit availability declined slightly after solid gains in May while the unemployment rate index was unchanged.
"Although employment has registered steady gains over the past several months, other economic indicators continue to show a mixed picture," said IHS Global Insight Senior Economist James Gillula. "However, we continue to expect growth to accelerate in the second half of the year."
To house the growing number of economic research and financial indicators from the IFA, a new microsite has been introduced, FranchiseEconomics.com.
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