Franchisees Lead the Charge in US Job Creation

Posted on May 31, 2011 by Farrah Kennedy

In one of the slowest economic recoveries in American history, jobs seem to be the hot button issue among politicians and economists alike. Job growth after a recession has historically picked up, resulting in a net gain in jobs within 22 months of the end of the recession; however the nation has 5% fewer jobs today than when the recession began. The construction industry was hit the hardest, with 2 million jobs lost (2), making up for nearly 30% of the total jobs lost since December, 2007. Despite this poor job growth performance overall, franchisees have found ways to create jobs at record numbers in a variety of industries.

Fast food giant, McDonalds, recently held its "national hiring day" where they added as many as 50,000 jobs in one day (1). McDonalds, and other fast food franchises, have surprisingly found growth during the recession and economic recovery. While fast food jobs may not seem like a great replacement to the jobs that have been lost, these numbers still show that jobs are being added, meaning lower unemployment numbers, less government aid needed, and more money flowing through the economy.

Health care has also seen dramatic growth in the past few years, with nearly 1 million jobs added since the start of the recession. The average reader may assume that all of the health care jobs are wrapped up in the hospital and private practice sector, leaving little or no jobs for anyone without a medical degree. The fact stands that many of the most successful franchises in the country right now are in the health care industry, and cover a wide array of sub-industries within the field. Many franchisors in the health care and senior care industries have seen a doubling and even tripling of profits in the last year, as more baby boomers move into the senior citizen age bracket and the need for quality health care increases.

Job loss can also give a would-be-entrepreneur a push in the right direction, spurring them on to take the risk they may have been debating about before losing a job. Starting your own business can be a risky endeavor in any type of economy, but for those facing unemployment, moving to a freelance role or opening your own business can be the perfect choice.

No one can accurately predict when the economy will truly recover to pre-recession numbers, but job growth numbers are a health indicator that we're moving in the right direction. The correlation between job growth and economic growth is often seen as a chicken and egg conversation, but with nearly 200,000 jobs being added each month (3), it's safe to say that we're finally moving in the right direction, and franchisees are leading the charge.