Research >> Economics
Paychex-IHS Small Business Jobs Index grew to 98.52 in June 2021
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Despite the competitive hiring environment, small business employment growth grew 0.26 percent in June, according to aggregated payroll data of approximately 350,000 clients provided by Paychex. The data released in the latest report of the Paychex | IHS Markit Small Business Employment Watch shows momentum in job growth with the Small Business Jobs Index gaining 4.53 percent during the second quarter of 2021 (in part driven by the 2020 comparison period). Hiring is particularly strong in the leisure and hospitality sector, which gained 12.65 percent in the past quarter. Hourly earnings growth increased slightly, from 2.82 percent in May to 2.84 percent in June.
“With re-openings across the country, the leisure and hospitality jobs index regained its pre-pandemic level,” said James Diffley, chief regional economist at IHS Markit.
“Following a year marked by lower employment rates, there was a notable uptick in small business jobs growth in June and throughout the second quarter. In fact, all four regions of the country experienced an increase in employment last month,” said Martin Mucci, Paychex president and CEO.
In further detail, the June report showed:
• The national index gained 0.26 percent to 98.52 in June and 4.53 percent during the second quarter of 2021.
• Employment growth in the leisure and hospitality sector increased 1.22 percent in June and 12.65 percent during the second quarter of 2021.
• Wages are also on the rise in leisure and hospitality. The sector ranks highest in hourly earnings and hours worked growth, with weekly earnings growth up double digits.
• The South continues to lead all regions in small business job growth.
• Job growth in North Carolina spiked 6.36 percent during the second quarter.
• Tampa once again leads all metros job growth.
• Small Business Employment Gains Continue, Especially in Leisure and Hospitality
• Job growth in the leisure and hospitality sector rebounded to pre-pandemic levels in June
Paychex business 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.
Posted: June 29, 2021 Tuesday 08:30 AM