1851

According to a&nbsp;<a href="https://www.linkedin.com/news/story/jobless-claims-are-on-the-rise-7407442/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">recent LinkedIn News report</a>,&nbsp;<a href="https://www.bloomberg.com/news/articles/2025-06-12/us-recurring-jobless-claims-jump-to-highest-since-end-of-2021?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">new jobless claims reached their highest point</a> since 2023, with continuing unemployment claims rising to their highest level since late 2021. The&nbsp;<a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20250992.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">U.S. Department of Labor reported</a> that the four-week moving average of new filings rose to 240,250, suggesting a sustained increase rather than a temporary fluctuation.The LinkedIn report notes that the uptick coincides with slower hiring and growing economic uncertainty, placing new pressure on employers — including franchise owners — to reassess hiring, marketing and operational strategies.“This chart is not a sign of a healthy labor market,” economist&nbsp;<a href="https://www.linkedin.com/in/altmandaniel/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">Daniel Altman</a> said in the article. “The latest data show that almost 2 million people continued to claim unemployment benefits in the last week of May, the most since November 2021. The effects of uncertainty are starting to bite.”Altman went on to describe a labor market where job seekers, including new graduates, may face long wait times before landing work. “With very little churn, they could be looking for a long time,” he said. That environment could impact franchises in two critical ways — workforce availability and consumer behavior.For franchise systems that have struggled to recruit and retain staff in recent years, a cooling labor market may relieve some of that pressure. A larger available labor pool could ease hiring challenges for restaurants, fitness centers, retail concepts and other franchise types reliant on hourly service employees.But at the same time, elevated unemployment typically leads to lower discretionary spending — a key concern for franchises in hospitality and lifestyle sectors. As Altman noted, “Most likely, people are putting off big purchases because they're worried about their incomes.” That could translate to fewer restaurant visits, smaller purchases and greater price sensitivity, forcing franchisees to lean harder into value-based offerings and promotions.Franchise development may also see an impact. With uncertainty rising, some prospective franchisees may hesitate to make long-term financial commitments. Conversely, others may view franchising as a more stable career path in a shifting job market.While it’s too early to gauge the long-term impact, one thing is clear: franchisors and franchisees should watch labor market trends closely in the months ahead. As the Federal Reserve weighs interest rate adjustments and businesses recalibrate hiring, franchise brands must remain agile — ready to shift tactics to preserve both profitability and growth.Read the original LinkedIn News report&nbsp;<a href="https://www.linkedin.com/news/story/jobless-claims-are-on-the-rise-7407442/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">here</a>.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=rising-jobless-claims-affect-franchising-2729644" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

How Rising Jobless Claims Could Affect Franchising: Labor and Consumer Trends to Watch

1851 Franchise

Jobless claims have climbed to their highest levels in years, a trend that could reshape both risks and opportunities for franchise businesses across the country.

rising-jobless-claims-affect-franchising

Sola Salons

Photo of Sola Salons lobby area with retail display in window

Inside the 2025 Sola Salons Franchise Disclosure Document: What Aspiring Owners Need to Know

sola-salons-2025-fdd-breakdown

Right at Home

How Right at Home Is Building Its Corporate Staff of Innovation To Drive the Future of Senior Care

how-right-at-home-is-building-its-corporate-staff-of-innovation-to-drive-the-future-of-senior-care

Woodhouse Spas

Woodhouse Spas Expands Its Luxury Wellness Brand with Franchisee Signing in New Jersey

woodhouse-spas-expands-its-luxury-wellness-brand-with-franchisee-signing-in-new-jersey

Sola Salons Announces New Franchise Agreement in Ohio

Sola Salons Announces New Franchise Agreement in Ohio: Kristin and Greg Kranias to Expand Revolutionary Salon Concept to Rocky River

sola-salons-announces-new-franchise-agreement-in-ohio-kristin-and-greg-kranias-to-expand-revolutionary-salon-concept-to-rocky-river

Discover the Keys to Franchise Success With Woodhouse Spas COO, Ariel Clay

discover-the-keys-to-franchise-success-with-woodhouse-spas-coo-ariel-clay

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

The Top 20 Cleaning Franchises to Invest in for 2025

top-cleaning-franchises-to-invest-in

From Personal Care to Purpose-Driven Business: Why This Couple Is Bringing Griswold to Houston

from-personal-care-to-purpose-driven-business-why-this-couple-is-bringing-griswold-to-houston

The Top 20 Handyman Franchises To Invest in for 2025

top-handyman-franchises-to-invest-in

Franchisee spotlight graphic with photo of Raj Pingili and Paris Baguette logo

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

MORE STORIES LIKE THIS