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Paychex-IHS Small Business Jobs Index dipped to 99.77 in February
After an uptick to start the year, the Paychex | IHS Markit Small Business Employment Watch saw small declines in jobs and wage growth in February. The Small Business Jobs Index stands at 99.77, down 0.11 percent from January and one percent below last year. The index has been below 100 since July 2017. Hourly earnings increased $0.69 in the past year to $26.41, but February’s 12-month growth rate fell to 2.67 percent compared to 2.74 percent the previous month. Weekly earnings growth has also slipped below three percent during the past quarter.
“After a prolonged downturn, the Paychex | IHS Markit Small Business Jobs Index has stabilized at just below 100, a marginal decline in small business dynamism from a decade and a half ago,” said James Diffley, chief regional economist at IHS Markit.
“The results of the Small Business Jobs Index over the past year are evidence of the tightening labor market,” said Martin Mucci, Paychex president and CEO. “As the growth in jobs stabilizes because of challenges in finding qualified employees, we expect to see business owners making positive changes to wages and benefits to recruit and retain top quality talent.”
The Small Business Jobs Index decreased 0.11 percent to 99.77 in February
At $26.41, 12-month hourly earnings growth decreased from 2.74 percent in January to 2.67 percent in February; Weekly hours continued positive YOY growth for 15th straight month
South leads regions in employment growth; West ranks highest for wage growth
Washington State ranks first in job growth; Arizona remains first in hourly earnings growth
Seattle overtakes Denver as the top metro for small business job growth; Phoenix leads in small business wage growth
Above 100 for six years, Construction shows sustained small business employment growth; Leisure and Hospitality has the strongest hourly earnings growth
Posted: March 6, 2018 Tuesday 08:30 AM