Research >> Economics
Paychex-IHS Small Business Jobs Index declined slightly to 99.65 in March
Small business employment growth declined slightly in March, while wage growth remained largely consistent, according to the latest Paychex | IHS Markit Small Business Employment Watch. Falling 0.12 percent to 99.65 in March, the Small Business Jobs Index has been below 100 for the past nine months and has slowed 1.07 percent since March 2017. Hourly earnings grew $0.69 in the past year to $26.48 for a 12-month wage growth of 2.66 percent, virtually unchanged from 2.67 percent YOY growth in February. Due to continued increases in hours worked, weekly earnings growth is higher than hourly earnings growth at 2.90 percent.
“Small business job growth slowed slightly yet again, to its lowest point in more than seven years,” said James Diffley, chief regional economist at IHS Markit.
“Larger employers are adding more workers than smaller businesses at this time, though the tightening labor market is impacting businesses of all sizes,” said Martin Mucci, Paychex president and CEO. “Interestingly, as job applicants are scarce, this month, we saw one-month annualized hourly earnings increase by nearly three percent among small businesses, compared to the annual growth rate of 2.66 percent. This could be the beginning of accelerating wage growth to attract more employees.”
The Small Business Jobs Index decreased 0.12 percent to 99.65 in March
At $26.48, hourly earnings growth increased 2.66 percent YOY ($0.69); one-month annualized hourly earnings growth increased 2.94 percent; weekly earnings growth outpaced hourly earnings, up 2.90 percent YOY
South leads regions in employment growth; West ranks highest for wage growth
Tennessee rose to the top in state job growth; Arizona remains first in annual hourly earnings growth
Denver regained first place among metros in small business job growth; Phoenix continues to lead in small business wage growth
Construction industry maintains steady job growth at 100.42; Leisure and Hospitality leads industry sectors in hourly earnings growth
Posted: April 3, 2018 Tuesday 08:30 AM