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Paychex-IHS Small Business Jobs Index down to 99.12 in October
The Paychex | IHS Markit Small Business Employment Watch data for October again reflects the tight labor market with a dip in job growth and uptick in wages. Down 0.06 percent from last month at 99.12, the Small Business Jobs Index has slowed 1.28 percent over the past two years, consistent with a declining rate of unemployment in the same timeframe. The rate of hourly earnings growth in October stands at 2.41 percent ($0.63), increasing for the second month in a row.
“The national index has dropped 0.77 percent in the past year and 1.28 percent in the past two years,” said James Diffley, chief regional economist at IHS Markit. “This slowdown in small business employment growth has coincided with the sharp fall in unemployment over the past two years.”
“According to the latest Paychex Business Sentiment Report, released yesterday, business owners rank their ability to fill open positions with qualified candidates as a top challenge,” said Martin Mucci, Paychex president and CEO. “With employment growth continuing to show moderate declines, we’re seeing first-hand the impact of the tightening labor market on small businesses.”
Broken down further by geography and industry, the October report showed:
- The top regions for employment growth and wage growth, respectively, are the South and West.
- Texas ranks highest among states for jobs growth; Arizona ranks first in wage growth.
- Denver remains first among metros in jobs growth; Phoenix regained the lead in wage growth.
- The index for Construction has now been above 100 for seven years.
Posted: October 30, 2018 Tuesday 08:30 AM