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Small-business jobs growth holds steady in May
Small-business jobs growth holds steady in May
The rate of small business job growth in May was unchanged from April, according to the latest Paychex | IHS Markit Small Business Employment Watch.
The national Small Business Jobs Index – which measures the rate of small business job growth in the U.S. – stands at 99.45, a 0.04 percent decrease from April. Meanwhile, hourly earnings growth for U.S. workers slowed to 4.33 percent.
“Despite the challenges of a competitive labor market and tightening credit, our data suggests small businesses remain resilient as job growth holds steady,” said John Gibson, Paychex president and CEO. “Our data also shows a consistent trend of hourly earnings growth slowing over 11 of the past 12 months, perhaps providing some relief for businesses looking to hire.”
In further detail, the May report showed:
- At 99.45, small business employment growth is 1.41 percent lower compared to a year ago (100.87);
- Wage growth continues to fall nationally, with hourly (4.33 percent) and weekly earnings growth (3.96 percent) both dropping in May;
- The South leads small business employment growth among regions for the 14th consecutive month at 100.47;
- North Carolina leads job growth among states for the 11th consecutive month at 101.48, while Texas ranks first among states for both hourly (5.46 percent) and weekly earnings growth (4.99 percent);
- Houston is once again the top metro for small business job growth for the seventh straight month; Houston also ranks first among metros for hourly earnings growth (5.34 percent) in May, and
- Construction is the top sector for all three wage data components: hourly earnings growth (4.89 percent), weekly earnings growth (5.00 percent) and weekly hours worked growth (0.35 percent).
Drawing from the payroll data of roughly 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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