Research >> Economics
Paychex-IHS Small Business Jobs Index dipped to 98.14 in October
Small Business Wage Growth Gains Momentum, Job Growth Holds Steady in October. Paychex | IHS Markit Small Business Employment Watch shows small business hourly earnings growth hit 3.00 percent in October. The tight labor market positively impacted wage growth in October, according to the latest Paychex | IHS Markit Small Business Employment Watch. Hourly earnings are on the rise, reaching 3.00 percent ($0.80) growth in October. Additionally, after hovering just above two percent to start the year, weekly earnings growth has quickly improved to 3.36 percent as month-to-month gains grow larger. At 98.14, the national jobs index remains essentially the same as last month (98.22).
“There was little change in the jobs index in October, but hourly earnings growth continued to accelerate, and weekly earnings gains reached a new series high, 3.36 percent,” said James Diffley, chief regional economist at IHS Markit.
“The recruitment and retention challenges presented by this tight labor market are becoming more noticably reflected in employees’ paychecks,” said Martin Mucci, Paychex president and CEO. “We anticipate wage growth will continue as employers work to attract and keep top talent.”
Broken down further, the October report showed:
- The South remains first among regions in employment growth; the West retained its lead among regions in wage growth.
- Tennessee remains the leader among states in small business job growth; New York took the top spot among states for wage growth.
- Dallas is again the top metro for job growth; Los Angeles became the leading metro in wage growth.
- Leisure and Hospitality reached 5.00 percent hourly earnings growth in October, best among industry sectors.
Posted: October 29, 2019 Tuesday 08:30 AM