Hourly Earnings Growth Streak Continues; Small Business Hiring Holds Steady in March
Hourly earnings growth continued to advance for the tenth consecutive month for workers of U.S. small businesses, according to the latest Paychex | IHS Markit Small Business Employment Watch. The report also showed that national small business job growth remained near its recent record high, moderating 0.03 percent in March. The national jobs index stands at 101.29, increasing 7.47 percent over the past year. Hourly earnings growth grew to 4.76 percent year-over-year.
“Small business job growth continues to be historically strong,” said James Diffley, chief regional economist at IHS Markit.
“Many employees continue to benefit from solid hourly earnings growth. In fact, year-over-year hourly earnings growth has improved more than two percent since May 2021,” said Martin Mucci, Paychex CEO. “This is good news for Americans feeling the pressure of inflation and higher prices at the gas pump.”
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In further detail, the March report showed:
- At 101.29, the national index remains near its historic peak set in January 2022.
- The West remains the top region for small business job growth, North Carolina the highest-ranking state, and Dallas the top metro.
- Nationally, hourly earnings growth improved to 4.76 percent, its tenth consecutive increase.
- Annual weekly earnings growth grew to above four percent.
- The West and South lead regions with hourly earnings growth above five percent.
- Ohio and North Carolina have the highest rates of hourly earnings growth, both above six percent.
- Leisure and hospitality leads the industry sectors in both small business jobs growth and hourly earnings growth.
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Paychex solutions reach 1 in 12 American private-sector employees, making the Small Business Employment Watch an industry benchmark. 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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