U.S. Small Business Job Growth Shows Positive Gains, While Wage Inflation Decelerates
Weekly earnings growth increases as weekly hours worked stabilize
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![The Paychex Small Business Jobs Index rose 0.46 percentage points to 100.58 in May, the largest one-month increase since January 2022. (Graphic: Business Wire)](https://mms.businesswire.com/media/20240604606746/en/2148661/4/may2024-sbew-release_graphic.jpg)
The Paychex Small Business Jobs Index rose 0.46 percentage points to 100.58 in May, the largest one-month increase since
“It appears we are seeing a stabilization in job growth and continued downward pressure on hourly wages,” said
“Small business owners in most sectors scheduled workers for more hours in May, which resulted in increased weekly earnings,” Gibson added. “Following a long-term trend of decreasing hours worked for small business employees, there are early signs of a turning point, moving towards stabilization.”
Jobs Index and Wage Data Highlights:
- The national jobs index increased 0.46 percentage points to 100.58 in May, the largest one-month gain in more than two years. Despite the 0.46 percentage point increase in May, the national jobs index was down 0.09 percentage points during the past three months.
- At 100.58, the national jobs index showed modest employment gains, though at a slower pace than last year (0.78 percentage points).
- All regions improved their rate of employment growth in May, led by the Midwest with a one-month increase of 0.61 percentage points to an index level of 100.94. With an index of 101.05, the South has been the fastest-paced region for small business employment growth for 19 of the past 21 months.
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Following eight-straight decreases, the Leisure and Hospitality sector increased 0.77 percentage points to a 100.26 jobs index in May, marking the largest one-month gain since
February 2023 . -
Hourly earnings growth for workers slowed to 3.13% in May, the lowest level since
June 2021 (2.90%), and resumed the downward trend of the past two years. -
One-month annualized hourly earnings growth was 2.11%, more than one percent below the year-over-year rate and the lowest level since
November 2020 (1.74%).
The complete Small Business Employment Watch results for
About the Paychex Small Business Employment Watch
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