NEW YORK (AP) — Consumer spending drove a big increase in hiring at franchise companies during June, according to a report released Wednesday.
Payroll provider ADP said private-sector franchises in the U.S. that use its services added 27,910 jobs, up 46 percent from the 19,160 added in May. Restaurants added 21,010, on top of nearly 14,000 the previous month.
Other consumer-related industries had significant gains in hiring. Gas stations and auto repair franchises added 2,750 jobs and accommodations providers added 1,250.
The report showed that the continuing strength in consumer spending is helping small business grow. Economists have noted that the increase in Social Security taxes that went into effect on Jan. 1 has not deterred consumes from spending.
Franchises in several industries showed declines in employment, including leisure companies, which lost 790 jobs; personal services, which lost 520 and real estate, which lost 400.
The report, compiled with Moody's Analytics, is based on data provided to ADP by its franchise customers. The payroll company also issues monthly reports on employment at all its business customers, and a separate report on small business employment.