ROCHESTER, N.Y.–According to the Paychex Small Business Employment Watch, job growth in U.S. small businesses with fewer than 50 employees grew slightly in April, gaining 0.27 percentage points to an index level of 100.02. Conversely, hourly earnings growth for small business workers fell to its lowest since May 2021 at 2.82%. The data reflects a relatively stable small business labour market as employers adopt a cautious approach to hiring amidst economic uncertainties.
John Gibson, Paychex president and CEO, noted that there are no evident signs of recession based on their data, suggesting that many small business owners prefer to maintain their workforce until they have a clearer sense of future market conditions.
Key Points
- The Small Business Jobs Index increased by 0.27 percentage points to 100.02 in April.
- Hourly earnings growth for workers hit a low of 2.82% since May 2021.
- Weekly worked hours growth remained negative at -0.17% despite a one-month annualised growth of 2.62%.
- All four regional jobs indexes saw improvements, particularly the Midwest, which leads for the 11th consecutive month.
- Ohio achieved a notable job growth spike, rising 2.24 percentage points to top the state rankings for the first time since 2014.
- Minneapolis reported strong job gains, maintaining its top position in state rankings for the second month running.
- The Professional and Business Services sector recorded the best one-month gain with an increase of 0.82 percentage points.
Why should I read this?
If you’re interested in the health of small businesses—or perhaps you’re part of one—this article is a must-read! It highlights the slight but important uptick in job growth, showing that while things may not be booming, they’re certainly not falling apart. Understanding these trends can offer critical insights into the market, making it easier for you to navigate your business decisions. We’ve saved you time by distilling this key information!