Franchising sector creates 3% more jobs in 2024

Employment in the franchising sector continues to grow in Portugal. After increasing 4.8% last year, having surpassed the 185,000 jobs threshold, it is expected to grow “between 2% and 3%” for 2024, according to the general secretary of the association representing the sector, Cristina Matos who told online news source ECO that the shortage of skilled workers remains a challenge.

“For 2024, estimates point to continued growth [in employment in the sector], although slightly lower than in 2023, with an expected increase of between 2% and 3%. The stability and gradual expansion of franchising brands support this growth, as long as the macroeconomic scenario remains favourable,” said Cristina Matos, at the time of the Expofranchise fair, which took place on October 18 and 19, at Pátio da Galé in Lisbon.

Asked about the specific characteristics of employment in the sector (which already represents 27% of total jobs in the country), the general secretary of the Portuguese Franchising Association (APF) explains that there is a “diversity of bonds and age groups, with a growing balance between fixed-term and open-ended contracts”. Franchising turnover increased by almost 30% in 2023.

Regarding salaries, Cristina Matos would not be drawn on numbers, noting that they vary according to the area of activity. “But many franchisees have been aligning with market conditions to retain talent, especially in areas such as food and services where labour requirements are higher,” she said.

Cristina Matos sees the shortage of skilled workers and the retention of talent as one of the challenges that employment in franchising faces, along with the increase in operating costs.

“The sector feels the shortage of labor, especially in the construction and refurbishment sectors and in customer service,” she says. And adds that “to overcome this challenge, brands have invested in benefits attractiveness, partnerships that include training programs and talent retention policies to maintain growth.”