Payrolls for U.S. franchise establishments increased by a whopping 40,700 jobs for the month of June. It is the highest number of franchise hires in the last year since December';s 45,200 and October's 47,900. Small businesses of less than 50 employees, increased 95,000 jobs in June, up from 84,000 in May.
Franchised restaurants hired the most at 33,100 jobs while auto parts and car dealers were the second major group to hire, with 4,100 jobs, according to ADP's National Franchise Report.
But not all news was good news. Hiring from food retailers, such as franchised supermarkets and convenience stores, were down by 700 for the month. The franchised leisure sector, such as fitness, recreation centers and bowling alleys, was down the most, having fallen by a dismal 6.3 percent in job creations compared to last year. For the month of June, leisure franchises were also down the most in total hiring numbers, haven fallen by 750.
Total nonfarm private sector employment increased by 172,000 jobs from May to June. Professional/business services contributed 51,000 jobs, up from May's 47,000. Trade/transportation/utilities grew by 55,000, nearly twice that of the 27,000 jobs added the previous month. Financial activities added 2,000, down from last month's gain of 13,000 jobs.
In regard to the increase in total nonfarm private employment, Mark Zandi, chief economist of Moody's Analytics, said: "Job growth revived last month from its spring slump. Job growth remains healthy except in the energy and trade-sensitive manufacturing sectors. Large multinationals are struggling a bit, and Brexit won't help, but small- and mid-sized companies continue to add strongly to payrolls."
Regarding private-sector employment, vice president and head of the ADP Research Institute, Ahu Yildirmaz, added: "Lackluster global growth, low commodity prices, and an unfavorable exchange rate continue to weigh on U.S. companies, especially larger companies."