Research >> Economics
Paychex-IHS Small Business Jobs Index increased to 98.93 in February
The Paychex | IHS Markit Small Business Employment Watch continued to reflect signs of the tight labor market. At 98.93, the Small Business Jobs Index was unchanged in February, remaining just below 99. Though the rate of job growth has stayed relatively consistent over the past three months, the national index is down 0.84 percent year-over-year. Hourly earnings growth improved once again from the previous month, up 2.50 percent ($0.66). One-month and three-month annualized growth rates for weekly hours worked were positive in February. As a result, weekly earnings growth also increased for the first time since last summer.
“Small business job growth remains weak in this very low unemployment economy,” said James Diffley, chief regional economist at IHS Markit.
“Businesses continue to face challenging hiring conditions due to the tight labor market,” said Martin Mucci, Paychex president and CEO. “Our latest survey of business owners reinforces this – it shows the ability to fill open positions with qualified candidates continues to be a challenge."
Broken down further by geography and industry, the February report showed:
- The South regained the lead among regions for employment growth; the West remains the leading region for hourly earnings growth.
- Texas regained its position as the strongest state for small business job growth; California is once again the top state for wage growth.
- Dallas remains first among metros in job growth; Riverside, California remains the top metro for wage growth.
- Leisure and Hospitality has the fastest hourly earnings growth among industry sectors (4.23 percent).
The Paychex | IHS Markit Small Business Employment Watch shows shows small business job growth stayed consistent with the previous month and hourly earnings growth increased slightly.
Posted: March 5, 2019 Tuesday 08:30 AM