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Paychex-IHS Small Business Jobs Index declined to 98.01 in August
The Paychex | IHS Markit Small Business Employment Watch shows job growth declined again in August while wage growth stabilized. At 98.01, the national jobs index fell 0.17 percent from last month and 0.76 percent over the past quarter, contributing to a 1.22 percent year-over-year drop in the rate of small business job growth. Hourly earnings growth settled at 2.61 percent ($0.69) in August, and weekly hours worked showed positive growth for the first time in 2019.
“The jobs index has fallen since early 2017. In 2019, we’ve seen a continuation of that slowdown,” said James Diffley, chief regional economist at IHS Markit.
“Small businesses are adapting to the challenges of the tight labor market by increasing hours and earnings,” said Martin Mucci, Paychex president and CEO. “In August, we saw an increase in weekly hours worked, as well as higher hourly earnings growth compared to this time last year.”
Broken down further, the August report showed:
- Segmenting hourly earnings growth results by employee type shows employees at 2.75 percent, while owners are much lower at 0.86 percent.
- The South remains first among regions in employment growth; the West leads regions in hourly earnings growth.
- Dallas is again the top metro for job growth; San Diego maintains its lead among metros in wage growth.
- Stable at 4.54 percent in August, Leisure and Hospitality leads industries in hourly earnings growth.
The Paychex | IHS Markit Small Business Employment Watch shows small business job growth fell 0.17 percent last month; Weekly Hours Worked Increase as Small Business Hiring Challenges Persist.
Posted: September 3, 2019 Tuesday 08:30 AM