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Paychex-IHS Small Business Jobs Index up to 98.32 in February
The Paychex | IHS Markit Small Business Employment Watch shows another monthly increase for small business job growth, while hourly earnings growth slowed in February
The latest Paychex | IHS Markit Small Business Employment Watch shows an upturn in the pace of small business job growth for the third straight month, a trend last seen in early 2017. Though down 0.61 percent from last year, employment growth increased 0.15 percent from the previous month, and 0.22 percent in the past quarter, to 98.32. Hourly earnings growth dipped to 2.74 percent in February. Weekly hours worked also fell for the second consecutive month but remain up 0.41 percent from a year ago.
Note: Findings are reflective of data through Wednesday, February 19, the cutoff date for the monthly Small Business Employment Watch.
“The national jobs index has turned upward as three monthly increases have recovered the ground lost since June of last year. Wage growth, however, peaked late in 2019 and has begun to decelerate in 2020,” said James Diffley, chief regional economist at IHS Markit.
“The past three months mark the longest string of job growth increases in nearly three years, indicating a positive start for small business hiring in 2020,” said Martin Mucci, Paychex president and CEO. “However, these results have yet to reflect any impact from cases of the COVID-19 (coronavirus), which are expected to increase in the coming months.”
Broken down further, the February report showed:
- The South remains the leading region for small business employment growth; the West continues as the top region for hourly earnings growth. Tennessee continues to lead states in small business job growth; California leads in hourly earnings growth.
- Philadelphia became the top metro for small business job growth; Los Angeles ranks first among metros in hourly earnings growth.
- Small business hiring growth is widespread, with all industry sectors showing employment gains during the past quarter.
Posted: March 3, 2020 Tuesday 08:30 AM