The Paychex | IHS Markit Small Business Employment Watch index of small-business job growth continued to slow in August, while hourly earnings continued to gain momentum.
“There was little change in August, signifying the index’s dip below 100 in July was not a fluke, said IHS Markit chief regional economist James Diffley. “Earnings continued to accelerate, with the growth rate now up 3 percent from a year ago.”
The Small Business Job Index was 99.96 this month, a less than 1 percent decline from a year ago. An index level of 100 equates to moderate job gains, represented by the employment growth levels seen during the 2004 base year.
The Northeast had the biggest slowdown of jobs among regions nationwide, with most of the decline occurring in the Middle Atlantic. Trending near the bottom of the state rankings throughout the year, New York slowed to 99.05, a seven-year low.
Hourly earnings nationwide in August were $25.98, reaching a year-over-year growth rate of 3 percent. New York saw a 3.74 percent earnings growth in August, the third highest nationwide. New York’s average hourly wage this month was $26.25.
Although leisure and hospitality has slowed during the past year, it remains one of the fastest-paced sectors in job growth.
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