The Paychex Small Business Employment Watch for July 2024 shows stable hourly earnings growth and a continued tight labor market for U.S. small businesses. Despite a moderated job growth rate, small businesses are adapting to economic pressures and evolving regulatory conditions.
- Overall Employment and Wage Trends
- Hourly Earnings Growth: Held steady at 3.16% in July
- Weekly Earnings Growth: Remains below 3% for the sixth consecutive month
- Small Business Jobs Index: Averaged moderate gains (100.44) with a July reading of 99.87
- Regional and State-Specific Trends
- Regional Highlights: Strongest job growth in the Midwest (Indiana, Michigan, Missouri, Ohio)
- State Variations: Significant job losses in California with an index of 98.74
- Sector-Specific Trends: Construction sector sees the largest one-month change but leads in hourly and weekly earnings growth
- Industry Insights
- Top Industry for Employment Growth: Education and Health Services (102.04)
- Weakest Hourly Earnings Growth: Education and Health Services at 2.67%
- Construction Sector Performance: Leads in earnings growth (hourly: 3.84%, weekly: 3.79%) but has seen a decrease in overall index level
- Challenges and Adaptations
- Labor Market Conditions: Tight labor market with inflationary pressures and evolving regulations
- Hours Worked: Continues to be managed carefully, with negative growth year-over-year for the 16th month
- Access to Data and Reports
- Interactive Charts: Available at www.paychex.com/watch
- Monthly Alerts: Sign up for updates on Employment Watch
The July 2024 Paychex Small Business Employment Watch highlights steady wage growth amidst a challenging labor market. While small businesses face pressures from inflation and regulatory changes, they continue to demonstrate resilience. Regional and industry-specific trends offer insights into varying growth patterns and highlight areas for potential focus.
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