The Paychex Small Business Employment Watch offers valuable insights into the current state of small business employment in the United States. Let’s delve into the recent findings regarding hourly earnings growth, job growth trends, and other key highlights.
- Hourly Earnings Growth and Job Growth Trends:
- Hourly earnings growth rose to 3.34%, halting a downward trend observed since mid-2022.
- Job growth among small businesses slowed in April, with the Small Business Jobs Index at 100.12.
- Weekly hours worked for employees saw a decline for the 13th consecutive month, down -0.41% in April.
- Insights from Paychex CEO, John Gibson:
- Gibson notes that although the jobs index remains above 100, indicating continued employment growth, the pace has slowed.
- Demand for qualified workers surpasses supply, potentially driving employers to offer higher wages.
- Despite the increase in hourly earnings, weekly earnings growth remains below three percent, suggesting controlled hours worked by employers.
- Regional Highlights and Wage Data:
- The West leads in hourly earnings growth for the 11th consecutive month, with Washington and Seattle topping states and metros, respectively.
- Small business job growth decelerated across all industries in April, except for Education and Health Services.
- Construction sector maintains growth leadership in hourly earnings, weekly earnings, and weekly hours worked for the sixth consecutive month.
The insights from Paychex’s Small Business Employment Watch shed light on the evolving dynamics of small business employment. As hourly earnings increase and job growth fluctuates, businesses must adapt to the changing landscape to attract and retain talent effectively. Stay informed to navigate the complexities of today’s employment market.
