Rising Jobless Claims May Fuel Franchise Industry Growth

New unemployment claims reached the highest level in a month last week, reaching 226,000, slightly higher than the forecasted 221,000, Reuters reports. The market has slowed with fewer jobs created in July, but the data indicates employers are not yet executing mass layoffs. Rather, they are managing shifting labor demands through attrition. Though job growth has slowed, the unemployment rate remained at a relatively low 4.2% in July.

Employers remain hesitant to increase hiring, meaning those who have lost jobs due to attrition or small-scale layoffs have a harder time landing their next roles.

The “no-hire, no-fire” trend may benefit the franchise industry. Professionals who have been laid off or those just looking to make a change need a pathway, and the next corporate job may not fall into their laps. Choosing to invest in a franchise is a great next step for these individuals, and that decision will benefit both them and the larger job market.

According to the International Franchise Association, franchising is expected to create over 200,000 jobs this year. For job seekers, this is good news. For franchisees concerned about attracting top talent, uncertainty in the job market could also be a good thing. With job creation rare in other industries, franchisees will likely have a better chance at filling vacancies.