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Paychex-IHS Small Business Jobs Index increased to 94.25 in March
The latest Paychex | IHS Markit Business Employment Watch shows notable increases in jobs growth in March across all four U.S. regions and nearly all states and metros analyzed in the report. The Small Business Jobs Index increased to 94.25 in March. While the index remains 4.03 percent below its March 2020 level, last month’s 0.30 percent increase has been the most significant one-month gain since 2013.
Another leading indicator of economic strength, hourly earnings, reached 2.98 percent, its fourth month of growth. Weekly earnings also increased, rising to 3.58 percent, a result of growth in weekly hours worked.
“The Small Business Jobs Index revealed a meaningful increase in March. But there remains much ground to make up,” said James Diffley, chief regional economist at IHS Markit.
“With vaccinations ramping up across the country and business restrictions easing as a result, small business employment growth is starting to move in a positive direction. Increased hiring and wage growth in the leisure and hospitality industry, which was particularly impacted over the past year, are promising signs,” said Martin Mucci, Paychex president and CEO. “The extension of the Paycheck Protection Program for two more months provides additional support as the loans should help qualifying businesses weather remaining challenges resulting from the COVID-19 pandemic.”
The monthly report is compiled from aggregated payroll data of approximately 350,000 clients on the Paychex human capital management (HCM) suite. Paychex software and solutions reach 1 in 12 American private-sector employees, making the Small Business Jobs Index report an industry benchmark. The national jobs index uses a 12-month same-store methodology to gauge small business employment trends on a national, regional, state, metro, and industry basis.
In further detail, the March report showed:
- Jobs growth improved in all four U.S. regions in March, as well as in 18 of the 20 states, and 16 of the 20 metros analyzed.
- The South continues to lead all regions in small business job growth.
- Florida remains the top state for job growth.
- Leisure and hospitality saw the greatest improvement among industry sectors, up 1.00 percent.
- Leisure and hospitality also saw a significant gain in hourly earnings growth.
Small Business Jobs Growth Shows First Significant Gain Since the Start of the Pandemic in the U.S.
The leisure and hospitality industry led job growth, improving a full percentage point from the previous month.
The complete results for March, including interactive charts detailing all data at a national, regional, state, metro, and industry level, are available at www.paychex.com/watch. Highlights are available below.
Posted: March 30, 2021 Tuesday 08:30 AM