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Paychex-IHS Small Business Jobs Index declined to 94.32 in October
The latest Paychex | IHS Markit Small Business Employment Watch shows a moderation in small business hiring from the previous month, declining 0.13 percent nationally to 94.32. Hourly earnings growth stood at 2.88 percent in October, while weekly hours worked remained positive, up 0.38 percent from last year.
“The Small Business Jobs Index dipped again in October, coinciding with the recent surge in COVID-19 cases,” said James Diffley, chief regional economist at IHS Markit.
“As we mark more than seven months since the CARES Act passed, a new round of federal stimulus will play an important role in alleviating some of the ongoing financial challenges impacting small businesses as a result of the COVID-19 pandemic,” said Martin Mucci, Paychex president and CEO. “Our latest survey of small business owners revealed that 44 percent of businesses strongly support a second round of Paycheck Protection Program (PPP) loans.”
The report also includes regional, state, metro, and industry level analysis, showing:
- The South remains the top-ranked region for small business hiring and has improved its pace of job growth for the second month in a row.
- Ranking last among regions, job growth in the West slowed 0.26 percent in October and 0.99 percent during the past quarter.
- The Northeast has ranked first among regions in weekly hours worked growth for the past six months.
- With index levels above 96, Florida and Texas are the top two states for small business employment growth.
- New Jersey, Massachusetts, and Pennsylvania lead hourly earnings growth among states.
- At 3.89 percent, hourly earnings growth is strong in Construction and the sector leads in employment growth as well.
- At 88.22 in October and down 0.48 percent from the previous month, Leisure and Hospitality’s employment growth is well below all other sectors.
Small Business Jobs Index Moderates as COVID-19 Cases Rise Throughout the U.S.
The report by Paychex and IHS Markit showed a 0.13 percent moderation in national job growth; however, job growth increased in the South for the second consecutive month
Posted: November 3, 2020 Tuesday 08:30 AM