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Paychex-IHS Small Business Jobs Index dipped to 99.40 in June
The Paychex | IHS Markit Small Business Employment Watch June shows declines in the rates of small business jobs and wage growth. Following a small increase in May, the Small Business Jobs Index dipped in June to 99.40, marking a 0.69 percent decrease year-over-year and 12 consecutive months under 100. The pace of annual wage growth moderated, falling to 2.47 percent ($0.64) in June. It is the first time since early 2016 that wage growth has been below 2.50 percent. Weekly earnings growth also slowed slightly to 2.73 percent, while weekly hours worked increased 0.20 percent year-over-year.
“At 99.40, the national index is at its lowest level since 2010, as small businesses are having difficulty hiring in the very low unemployment environment,” said James Diffley, chief regional economist at IHS Markit.
“Despite the tightening labor market conditions, we’re seeing only modest levels of wage growth” said Martin Mucci, Paychex president and CEO. “With the unemployment rate at historic lows, we’d expect to see accelerating wages in this type of employment market.”
The Small Business Jobs Index decreased 0.20 percent in June to 99.40
At $26.65, hourly earnings growth moderated to 2.47 percent YOY ($0.64)
South remains the top region for employment growth; West ranks highest for wage growth
Tennessee ranks first in state job growth; Arizona remains first in annual hourly earnings growth
Denver continues to lead metros in job growth; Phoenix remains first among metros in wage growth
Financial Activities was the only industry to show an increase in job growth in June; Hourly earnings growth for Leisure and Hospitality outpaces the other industry sectors at 3.93 percent
Posted: July 3, 2018 Tuesday 08:30 AM