Small business hiring picks up pace in April, Paychex reports

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The pace of hiring among U.S. small businesses accelerated in April, marking a second straight month of gains as employers continued to navigate economic uncertainty with what Paychex described as notable resilience. 

According to the latest Paychex Small Business Employment Watch, the national Small Business Jobs Index — which tracks employment growth among businesses with fewer than 50 employees — increased 0.35 percentage points from March to April to 99.16. The increase represented the largest one-month gain since February 2025. 

The report also found that hourly earnings growth for small business workers remained steady at 2.71% in April, staying below 3% for the 18th consecutive month. Weekly hours worked growth rose 0.18%, marking the second consecutive month of positive gains, which is a trend Paychex said has occurred only twice in the past five years. 

“Despite facing an evolving set of challenges and an increasingly uncertain macroenvironment, our latest employment data from U.S. small business clients indicate some encouraging signs,” said John Gibson, Paychex president and CEO. 

Gibson said consecutive gains in employment and weekly hours worked during March and April demonstrate “remarkable resilience” among small business owners. 

“We remain focused on supporting our clients as they manage both complexities and opportunities, including the 2025 tax cuts, so they are well positioned for long-term success,” he said. 

Paychex reported that the national jobs index has risen 0.39 percentage points since February, marking the largest two-month gain in more than three years. 

Regionally, all four U.S. regions saw improved small business employment growth in April. The Northeast posted the largest monthly increase at 0.56 percentage points, followed by the West at 0.50 percentage points. The Midwest remained the strongest-performing region overall for the 23rd consecutive month with a jobs index of 99.55. 

Among states and metro areas, Wisconsin led large states with a jobs index of 100.84, while Philadelphia topped metro areas at 100.09. 

Construction posted the strongest monthly improvement among industries, with its jobs index climbing 0.64 percentage points to 98.97. The sector performed best in the Midwest and Northeast, where job growth outpaced the South and West. 

Meanwhile, weekly earnings growth rose to 2.90% in April, its highest level since May 2024, as both one-month and three-month annualized growth rates exceeded 4%, according to the report. 

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