Small business hourly earnings growth over the past 12 months declined again in April to 4.52 percent, according to the Paychex | IHS Markit Small Business Employment Watch.
After increasing every month in 2023, the Small Business Jobs Index, which measures the change in national employment growth for businesses with less than 50 employees, declined slightly by 0.24 percent from March and now stands at 99.49 in April.
“Our April data shows wage growth is slowing, signaling that the Fed’s efforts to pull back inflation are succeeding,” said John Gibson, Paychex president and CEO. “Small business owners continue to successfully navigate a variety of macro issues including the cost of and access to capital, historically low labor participation rates and the transition of the workforce to Generation Z.”
In further detail, the April Employment Watch report showed:
Drawing from the payroll data of approximately 350,000 Paychex clients with fewer than 50 employees, the monthly report offers analysis of national employment and wage trends, as well as examines regional, state, metro and industry sector activity.
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