Research >> Economics
Paychex-IHS Small Business Jobs Index moderated slightly to 98.27 in May 2021
The rate of job growth was largely unchanged in May, according to aggregated payroll data of approximately 350,000 clients provided by Paychex. The data released in the May report of the Paychex | IHS Markit Small Business Employment Watch shows the Small Business Jobs Index moderated slightly, slowing 0.07 percent month over month. Hourly and weekly earnings growth fell below three percent in May, driven by part-time workers with lower wages returning to the workforce.
“The Small Business Jobs Index did not show significant growth—holding steady in May,” said James Diffley, chief regional economist at IHS Markit. “Small businesses are struggling to return to normal operations and expand due to labor shortages.”
“In addition to the hiring challenges seen nationally, job growth declines in the construction industry impacted the positive momentum of the past few months. The high cost and low availability of materials drove job growth in construction down 1.78 percent in May,” said Martin Mucci, Paychex president and CEO. “At the same time, with more people dining out and travel increasing across the U.S., job growth in the leisure and hospitality industry is rebounding significantly, and wages are too.”
In further detail, the May report showed:
- The national index is up 4.58 percent during the past quarter, driven largely by the lower employment comparison level last year.
• Job growth in the construction industry slowed sizably in May, down 1.78 percent.
• Leisure and hospitality continued their comeback, gaining 1.94 percent in May and 12.40 percent during the past quarter.
• The South continues to lead all regions in small business job growth.
• Texas once again takes the top ranking for job growth among states.
• Tampa leads metros in small business job growth.
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.
• Following April Surge, Small Business Job Growth Holds Pace in May
• The rate of job growth in leisure and hospitality continued to increase but slowed in the construction industry
Posted: June 1, 2021 Tuesday 08:30 AM