The restaurant industry almost always carries the franchise sector in terms of job creation. Not so this February: Restaurants only accounted for 1,390 new jobs nationwide according to the ADP's National Report.
On average, over the last six months, restaurants created 10,920 new jobs a month.
The dismal February growth extends the weak growth seen in January, when only 5,570 new restaurant jobs were created.
ADP says the slump is a result of the restaurant industry having expanded so much last year. This past December, the franchise industry added 36,072 jobs – double the monthly average. The restaurant sector was a big driver of that growth, representing 27,218 of the jobs created.
"After experiencing so much growth in 2013, restaurant hiring has been a little stagnant this year, said Ahu Yildirmaz, head of the ADP Research Institute. In 2013, restaurant franchise employment grew by approximately 135,000 jobs, compared to 65,300 in 2012.
Yildirmaz also blames the weather. "Strong growth last year, in combination with the harsh winter – has led to a lower rate of job creation for restaurants in 2014.”
In total, the franchising sector created 19,450 new jobs in February. Half of these stem from auto franchises, business services and accommodation industries.
For more on what areas in franchising were slumping and which were booming in February, check out the infographic below.
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