On the Dash:
Total employment at U.S. franchised dealerships rose to 1.13 million in 2024, the highest level since 2019.
Average weekly earnings per employee fell 1.7 percent to $1,897, reflecting normalized payrolls after high-demand years.
New-vehicle inventory dropped midyear 2025 due to pre-tariff consumer buying, even as dealership sales and service revenue grew.
Franchised new-vehicle dealerships in the U.S. added employees in 2024 even as average weekly earnings declined, according to the NADA’s 2025 Midyear Report. Total dealership employment rose to 1.13 million last year, the highest level since 2019, as stores rebounded from pandemic-related job cuts.
Individual dealerships added one employee on average compared with 2023, bringing the typical store’s workforce to 65, up from 64 in 2024 and 63 in 2023. Despite the hiring increase, average weekly earnings per employee decreased 1.7% to $1,897 in 2024, and median weekly earnings fell slightly to $1,463. The decrease reflects a normalization in payrolls following high demand for new vehicles in 2022 and 2023, when sales staff earned more due to limited inventory and vehicles selling near MSRP.
New-vehicle inventory started 2025 at 2.82 million units but declined 6.6% to 2.6 million by the end of June as consumers accelerated purchases ahead of new tariffs on imported vehicles and parts. Sales at franchised light-vehicle dealerships totaled more than $645 billion in the first half of 2025, up from $613 billion during the same period in 2024. Dealers also handled over 137 million repair orders, generating more than $81 billion in service and parts revenue.
The NADA’s report reveals that the U.S. dealership sector has largely recovered pre-pandemic employment levels while adjusting to evolving market conditions, including changing inventory, sales trends, and compensation patterns.