Latest Updates

• Paychex Small Business Employment Watch: March 2026 2026-03-31 08:30

  

  The Paychex Small Business Jobs Index edged up +0.04 pts MoM to 98.81 in March 2026 but remained -0.94 pts YoY lower, indicating stable but subdued small business hiring below the 100 baseline.

  • The national index rose slightly to 98.81 (+0.04 pts MoM), showing marginal stabilization in employment growth, though still below the neutral 100 level that signals expansion.

  • On a YoY basis, the index declined from 99.75 to 98.81 (-0.94 pts YoY), indicating a slower pace of small business job growth compared to March 2025.

  • The Midwest remained the top-performing region for the 22nd consecutive month, rising +0.24 pts MoM to 99.52, continuing to lead despite remaining just below 100.

  • The West remained the weakest region at 98.05 (-0.11 pts MoM; -1.47 pts YoY), highlighting persistent underperformance relative to other regions.

  • At the state level, Wisconsin increased +0.93 pts to 100.42, ranking first and moving above the 100 threshold, while Washington fell to 96.58, the lowest among states, with a -3.26 pt decline over the past quarter.

  • California posted a reading of 97.89 and has remained below 100 for two years, indicating sustained YoY job losses in small business employment.

  • Education and Health Services rose +0.32 pts to move back above 100, maintaining its position as a relatively stronger sector after briefly dipping below the expansion threshold.

  • Financial Activities declined -0.86 pts to 99.04, its lowest level in five years, while Leisure and Hospitality remained the weakest sector at 97.86 despite being the only sector to improve YoY, indicating continued sectoral divergence.

  

  Hourly earnings growth held at +2.66% YoY in March while weekly earnings rose +2.63% YoY and weekly hours worked increased +0.06% YoY, reflecting steady wage gains alongside modest improvement in labor utilization.

  • Hourly earnings growth remained at +2.66% YoY in March, staying below 3% for the 17th consecutive month, indicating a prolonged period of moderate wage growth.

  • Weekly earnings growth edged up to +2.63% YoY, while one-month annualized growth accelerated to +3.84%, matching a three-year high and pointing to a near-term pickup in earnings momentum.

  • Weekly hours worked increased +0.06% YoY, marking only the third positive reading since April 2021, suggesting a tentative improvement in labor utilization after a long period of contraction.

  • Regionally, the Northeast led hourly earnings growth at +3.02% YoY for the first time since June 2021, while the South lagged at +2.45% YoY for the tenth consecutive month, highlighting persistent regional divergence.

  • The West (+0.29% YoY) and South (+0.27% YoY) recorded the strongest gains in weekly hours worked, indicating relatively firmer labor utilization trends in those regions.

  • At the state level, Indiana led with +4.36% YoY hourly earnings growth and +4.43% YoY weekly earnings growth, followed by Tennessee (+4.17% and +3.99%), showing concentrated strength in select states.

  • Virginia posted the weakest hourly earnings growth at +1.85% YoY, while Georgia slowed to +1.89% YoY, its lowest since March 2019, indicating softness in certain regional labor markets.

  • By sector, Other Services led hourly earnings growth at +3.26% YoY, while Education and Health Services lagged at +2.20% YoY, and Construction recorded the strongest weekly hours worked growth at +0.39% YoY, reflecting sector-specific variation in wage and hours trends.

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• Paychex Small Business Employment Watch: February 2026 2026-03-03 08:30

  

  The Paychex Small Business Jobs Index fell to 98.77 in February 2026, down -0.53 MoM and -1.27 pts YoY, indicating a slowdown in small business hiring momentum below the 100 baseline.

  • The national index reading of 98.77 reflects continued moderation in employment growth, with the YoY decline of -1.27 pts highlighting a weaker pace compared to February 2025 and signaling softer small business labor conditions over the past year.

  • The Midwest remained the top-performing region for the 21st consecutive month, though it slowed -0.57 pts to 99.28 in February, suggesting it continues to lead other regions despite easing growth.

  • The West posted a reading of 98.16 and has been the weakest region for the past 12 months, underscoring a prolonged period of comparatively slower small business employment growth in that region.

  • At the state level, Indiana (100.29) reclaimed the top ranking and has remained above 100 for six consecutive months, while Missouri (100.14) and Georgia (99.85) followed, with Georgia noted as the only state showing positive one-, three-, and 12-month change rates in February.

  • Maryland declined -1.81 pts to 96.99, making it the weakest-performing state in the release, and seven of the 20 states analyzed slowed by more than -1.0 pt, with Tennessee posting the largest monthly drop at -2.16 pts.

  • Financial Activities rose to 99.90 and overtook Education and Health Services (99.78) as the top-ranked sector, marking the first time in five years Financial Activities has led, while Education and Health Services fell below 100 for the first time in nearly five years, ending its streak of consistent job gains.

  • Construction dropped -1.11 pts to 97.96 in February, representing the sector’s largest one-month decline since April 2023 and contributing to the broader softening in small business employment growth.

  

  Hourly earnings growth rose to +2.78% YoY in February, up slightly from January and remaining below 3% for a 16th consecutive month, while weekly earnings held at +2.62% YoY and weekly hours worked declined -0.24% YoY, indicating continued moderate wage gains alongside soft labor utilization trends.

  • Weekly earnings growth was steady at +2.62% YoY, and one-month annualized weekly earnings growth accelerated to +3.46%, its highest since last February (+3.55%), pointing to a short term pickup in momentum despite subdued longer term growth.

  • Weekly hours worked fell -0.24% YoY and has been negative in 58 of the past 60 months, underscoring a prolonged period of weak labor utilization even as wage growth remains positive.

  • Regionally, the Midwest led with +3.08% YoY hourly earnings growth and has held the top position since August 2025, while the South recorded the lowest regional hourly earnings growth at +2.52% YoY for a ninth straight month.

  • The West posted +0.09% YoY weekly hours worked growth, marking its first positive reading since May 2021 and signaling a break from an extended stretch of contraction in hours.

  • At the state level, Indiana led with +4.46% YoY hourly earnings growth and +4.20% YoY weekly earnings growth, while Tennessee’s hourly earnings growth rose to +4.30% YoY, attributed to faster wage growth in Trade, Transportation, and Utilities.

  • Virginia’s hourly earnings growth slowed to +1.73% YoY, making it the only state below 2%, whereas Maryland’s hourly earnings growth increased to +2.33% YoY after spending all of 2025 below 2%, reflecting a notable improvement over the past five months.

  • By sector, Construction recorded the strongest growth in hourly earnings (+3.30% YoY), weekly earnings (+3.36% YoY), and weekly hours worked (+0.32% YoY), while Education and Health Services ranked last in hourly earnings growth at +2.30% YoY and Leisure and Hospitality reported the weakest weekly hours worked growth at -0.66% YoY, with one-month annualized hours down -7.95%.

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• Paychex Small Business Employment Watch: January 2026 2026-02-03 08:30

  

  The Paychex Small Business Jobs Index held near flat at 99.30 in January 2026 (+0.04 pts MoM; +0.03 pts QoQ; -0.38 pts YoY), showing little change in hiring momentum.

  • The Midwest remained the top region for the 20th consecutive month, rising +0.20 pts MoM to 99.85, keeping it the strongest regional reading in the release.

  • The South posted the largest monthly improvement among regions, increasing +0.53 pts MoM to 99.56, a sharper pickup than other regions in January.

  • The West slipped to 98.55 and has been below 99 for six straight months and below 100 for 22 straight months, extending a prolonged period of below-baseline readings.

  • Missouri moved to the top of the state rankings, jumping +1.92 pts MoM to 101.58, its highest rank and index level since January 2024.

  • Tennessee increased +3.10 pts over the past three months to 100.78, ranking second behind Missouri (101.58) and showing one of the strongest recent state-level gains.

  • West Coast states California (98.27) and Washington (98.69) started 2026 below 99 and were cited as the weakest among states, while Florida fell to 98.79, its lowest reading since March 2021.

  • Education and Health Services led sectors for the 20th consecutive month at 100.57 and has reported growth for nearly five straight years, while Financial Activities rose to 100.11 (in line with its 2025 average of 100.12) and Manufacturing remained last among industries at 98.29, below 100 for a third consecutive January.

  

  Hourly earnings growth was 2.68% YoY in January and was described as essentially unchanged since summer 2025, remaining below 3% since November 2024 for 15 consecutive months.

  • Weekly earnings growth slowed to 2.53% YoY in January, while 1-month annualized weekly earnings growth has been below 2% for the past three months, pointing to weaker short-term momentum in weekly pay.

  • Weekly hours worked growth slipped to -0.09% YoY in January, a slight downgrade that aligns with softer labor utilization in the month.

  • The Midwest led regions again at 3.08% YoY hourly earnings growth and has increased for six consecutive months, extending its top ranking among regions since August 2025.

  • The South remained the weakest region for hourly earnings growth at 2.45% YoY for an eighth straight month, but it was the only region with positive weekly hours worked growth in January at 0.19% YoY and has been positive for six straight months.

  • Indiana led states in both hourly earnings growth (4.41% YoY) and weekly earnings growth (4.72% YoY) to start 2026, standing out relative to the broader low-to-mid 2% national pace.

  • Virginia’s hourly earnings growth decelerated to 1.42% YoY, with 3-month annualized growth below 1% for a seventh straight month, while Maryland remained among the bottom performers with hourly earnings growth at 1.89% YoY and weekly earnings growth at 1.80% YoY and has ranked among the bottom three states on both measures since March 2024.

  • Construction posted the strongest sector hourly earnings growth at 3.28% YoY, slightly above its 2025 average (3.14%) and after rebounding from sub-3% readings in September and October, while Education and Health Services was lowest at 2.31% YoY and has been below 3% for the past two years.

  • Leisure and Hospitality rose to 2.55% YoY, its highest since January last year (2.74%), and Manufacturing continued to rank among the top three sectors for hourly earnings, weekly earnings, and weekly hours worked growth, consistent with its pattern through 2025.

   

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• Paychex Small Business Employment Watch: December 2025 2026-01-06 08:30

  

  The Paychex Small Business Jobs Index ended December at 99.26 (2025 avg: 99.67 vs 100.22 in 2024), underscoring a continued multi-year slowdown in small business hiring.

  • The jobs index has decelerated steadily over the past four years, averaging 104.50 in 2021, 103.80 in 2022, 101.44 in 2023, 100.22 in 2024, and 99.67 in 2025, indicating a persistent cooling in small business employment growth.

  • The Midwest averaged 99.65 in 2025 and tied with the Northeast at 99.65 in December, making it the strongest region for small business employment growth over the year.

  • The West averaged 98.72 in 2025 and has remained below the 100 baseline for 21 consecutive months, ranking last among regions every month since February 2025.

  • Indiana averaged 101.50 during 2025 and ranked first among states at both the start and end of the year, standing out as one of the few states with consistent above-baseline growth.

  • California and Washington both averaged below 99 in 2025, while Maryland was the only other state to remain below 99 for the full year, highlighting regional weakness concentrated on the coasts.

  • Texas averaged 100.44 in 2025 but fell to 98.56 in December, its lowest reading since March 2021 and nearly three points below its level at the end of last year.

  • Education and Health Services led all sectors with a 2025 average of 100.49 and has posted positive growth for nearly five consecutive years, while Financial Activities slipped below 100 in December and Leisure and Hospitality ended 2025 as the weakest sector by both one- and three-month changes.

  

  Hourly earnings growth rose to 2.71% YoY in December (vs 2.74% 2025 avg), as the short-term 1-month rate annualized accelerated to 3.43%, the highest of 2025.

  • Hourly earnings growth has remained below 3% since August 2024, marking 17 consecutive months of subdued annual wage growth despite recent incremental improvement.

  • One-month annualized hourly earnings growth accelerated to 3.43% in December, the highest level of 2025 and the strongest reading since January 2024, pointing to firmer short-term momentum.

  • Weekly earnings growth increased to 2.72% YoY in December, ending the year above its 2025 average of 2.58%, suggesting broader gains when accounting for hours worked.

  • Weekly hours worked growth rose to +0.25% YoY, the highest level since May 2021, highlighting an improvement in labor utilization late in the year.

  • The Midwest led all regions in December and for full-year 2025, with hourly earnings growth at 2.95%, weekly earnings growth at 3.30%, and weekly hours worked growth at 0.42%.

  • The South posted the weakest hourly earnings growth at 2.47% for a seventh straight month, though weekly hours worked growth has remained positive for six consecutive months.

  • Indiana ranked first among states in December with hourly earnings growth of 4.21% and weekly earnings growth of 4.82%, followed by Illinois (3.51%) and Michigan (3.25%), reinforcing Midwest outperformance.

  • Manufacturing remained among the top three sectors for hourly earnings, weekly earnings, and weekly hours worked growth throughout 2025, while Education and Health Services ranked last for hourly earnings growth (2.40%) in Q4 and weekly earnings growth (2.23%) for the full year.

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• Paychex Small Business Employment Watch: November 2025 2025-12-02 08:30

  

  The Paychex Small Business Jobs Index rose to 99.38 in November (+0.11 pts MoM), marking a modest improvement but keeping the national index below the 100 baseline for year-over-year growth.

  • The national index has averaged 99.71 so far in 2025, running about -0.5 pts below the 2024 average and indicating slightly softer small business job growth this year.

  • The Midwest led regions for the 18th straight month at 99.79, while the Northeast climbed +0.44 pts to 99.75, returning to its level from a year earlier.

  • Five of 20 states posted readings above 100, with Indiana topping the list at 101.22 after gaining +1.54 pts over the past quarter.

  • Maryland was the weakest state at 97.45, down -2.18 pts over the quarter, while Tennessee (98.89) and Massachusetts (99.69) remained below 100 but improved more than one point.

  • Education and Health Services led sectors for the 18th consecutive month at 100.64, while Financial Activities remained above 100 at 100.30.

  • Manufacturing fell -0.73 pts to 98.32, ranking last among sectors and sitting below 99 across all regions.

  • Construction rose to 99.36 (+0.68 pts), with gains reported in every region.

  

  US small business hourly earnings growth rose to 2.66% YoY in November (from 2.58% in October), marking a slight pickup while remaining below 3% for a 16th straight month.

  • One-month annualized hourly earnings growth increased to 3.23%, the highest since February, indicating firmer short-term momentum than the 12-month rate.

  • Weekly earnings growth strengthened to 2.76%, the highest level of 2025 so far, showing broader improvement in total pay.

  • The Midwest led regions for hourly earnings growth at 3.01%, and its one-month annualized pace exceeded 4%, highlighting relative regional strength.

  • The South recorded the weakest hourly earnings growth at 2.43% for the sixth straight month, though it led regions in weekly hours worked growth at 0.31%.

  • Indiana ranked first among states with 4.00% hourly earnings growth and 5.13% weekly earnings growth; its one-month annualized hourly and weekly earnings gains surged to 7.52% and 9.98%.

  • Illinois (3.57%) and Michigan (3.29%) followed Indiana among states, reinforcing the Midwest's strong wage performance.

  • Maryland (1.58%), Massachusetts (1.96%), and Virginia (1.99%) posted the slowest hourly earnings growth, underscoring regional divergence.

  • Other Services (3.18%) led sectors for hourly earnings growth, with one-month annualized growth spiking to 6.10%, while Education and Health Services (2.32%) remained the softest sector for a fourth consecutive month.

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• Paychex Small Business Employment Watch: October 2025 2025-11-04 08:30

  

  The Paychex Small Business Jobs Index fell -0.25 pts to 99.27 in October 2025, the lowest reading since March 2021, reflecting a modest cooling in small business job growth nationwide.

  • The index has remained within one percentage point for the past year, signaling stability but little momentum in hiring.

  • The Midwest (99.77) led regions for the 17th consecutive month, while the West (98.31) remained the weakest, down -1.12 pts over the past quarter and below 100 for 19 straight months.

  • The South (99.66) was the only region to post a monthly gain, rising +0.05 pts, while other regions weakened.

  • North Carolina (101.48) topped states for small business employment growth, supported by strong gains in Leisure & Hospitality (103.31) and Construction (103.05).

  • Ohio (100.66) ranked second and has remained in the top two states for seven months, while Tennessee (97.68) ranked last and was down -3.41 pts YoY.

  • Washington (98.09) and California (98.17) continued to post declines, placing just above Tennessee.

  • Education & Health Services (100.59) led sectors for the 17th straight month, with both Educational Services (100.66) and Health & Social Assistance (100.58) showing YoY gains.

  • Manufacturing (99.05) posted the strongest one-month improvement (+0.87 pts), led by more than one-point gains in the South and West.

  • Professional & Business Services (98.63) fell -1.0 pt, its steepest monthly decline since December 2021, while Construction (98.68) continued to soften, with the West region falling nearly -2 pts to 95.83.

  

  US small business hourly earnings growth held at 2.58% YoY in October 2025, remaining below 3% for a 15th straight month and reflecting sustained moderation in wage pressures.

  • One- and three-month annualized hourly earnings growth came in at 2.35% and 2.29%, both slightly below the 12-month rate, suggesting limited near-term momentum.

  • Weekly earnings growth rose to 2.94%, the strongest since January 2024 (3.07%), indicating steady gains in total pay.

  • Weekly hours worked increased +0.44% YoY, the largest gain since April 2021, while one-month annualized growth (3.56%) exceeded 3% for the second straight month, the first such stretch in nearly a decade.

  • The Midwest led regions for hourly (2.85%), weekly (3.44%), and hours worked (0.58%) growth, while the South (2.41%) had the lowest hourly growth for the fifth consecutive month.

  • Illinois (3.50%) topped states for hourly earnings growth, followed by Indiana (3.17%), which also posted one-month annualized growth of 5.95%.

  • Michigan (4.34%), Indiana (4.30%), and Illinois (3.86%) led states for weekly earnings growth, while New York (-0.02%) and California (-0.10%) were the only states with negative hours worked growth.

  • Manufacturing continued to lead sectors for a second month with hourly (3.03%), weekly (3.82%), and hours worked (0.61%) growth, while Education & Health Services (2.21%) remained the weakest sector for both hourly and weekly gains.

  • Leisure & Hospitality recorded hourly growth of 2.29%, near its 2025 average, while weekly earnings improved to 2.91% as hours worked stayed positive since April.

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• Paychex Small Business Employment Watch: September 2025 2025-09-30 09:00

  

  The Paychex Small Business Jobs Index fell -0.31 pts to 99.52 in September 2025, the lowest level since March 2021, and was down -0.32 pts YoY, reflecting slower but steady small business job growth.

  • Midwest (100.02) remained the top-performing region for the 16th straight month, while the West (98.82) stayed below 100 for an 18th month, though losses have moderated.

  • The South (99.61) recorded the weakest 1-, 3-, and 12-month change rates among regions, indicating broad softness.

  • Ohio (100.87) led all states in September and, alongside Indiana (100.64), was the only Midwest state with YoY job gains.

  • Washington (98.34) rebounded +0.60 pts but remained the weakest state, followed by Maryland (98.52) and California (98.75), which has stayed out of the top half since March 2022.

  • Education & Health Services (101.06) led sectors for the 16th consecutive month, followed by Financial Activities (100.10) as the only other sector with YoY job gains.

  • Leisure & Hospitality (98.70) has remained below 99 since June 2024, while Construction (98.88) fell under 99 for the first time since March 2021.

  • Manufacturing (98.18) ranked last among sectors, though its 2025 YTD average still outpaces 2024 levels.
• Paychex Small Business Employment Watch: August 2025 2025-09-02 09:00

  

  The Paychex Small Business Jobs Index held steady at 99.83 in August 2025, essentially unchanged MoM (+0.01 pts), over the last quarter (+0.02 pts), and YoY (-0.06 pts), signaling stable small business job growth.

  • The Midwest (100.29) remained the top-performing region for the 15th consecutive month, while the South rose +0.46 pts to 100.16 (its 2025 high) and the West declined -0.51 pts to 98.92, the weakest regional reading.

  • Texas surged +1.13 pts to 101.80, ranking first among states and marking its fastest pace of job growth since March 2024; Dallas (101.04) led all metros, with Houston (100.90) close behind.

  • California slowed to 98.81, keeping it outside the top half of states since March 2022, while Washington fell to last at 97.74, its lowest level since March 2021.

  • Education & Health Services (101.28) was the strongest sector across all regions and has led national small business job growth for 15 consecutive months.

  • Manufacturing (99.20) improved +0.58 pts MoM and is the only sector with 2025 YTD growth (98.72) above its 2024 average (98.65), while Leisure & Hospitality (98.27) remained the weakest sector for the 15th straight month.

  

  US small business hourly earnings growth slowed to 2.58% YoY in August 2025 (from 2.74% in July), the weakest pace since December 2020 and the 10th straight month below 3%.

  • One- and three-month annualized hourly earnings growth fell to 1.41% and 2.18%, respectively, their lowest levels since 2020.

  • Weekly earnings growth rose to 2.82% YoY, extending a seven-month upward trend since January’s six-year low of 2.27%.

  • Weekly hours worked declined -0.28% YoY, with July revised down to -0.07%; one-month annualized growth dropped to -2.12%.

  • Regionally, the West led hourly earnings growth at 2.79%, while the Midwest topped weekly earnings at 3.01%; the South trailed at 2.58%.

  • By state, Washington led hourly earnings growth (3.77%) but had the weakest hours worked (-0.67%) and jobs index (97.74); Michigan posted the strongest gains in weekly earnings (4.34%) and hours worked (0.83%).

  • Manufacturing led sectors for hourly (3.05%) and weekly earnings growth (3.55%), while Construction stayed above 3% for the 49th straight month; Leisure & Hospitality remained the weakest at 2.31%.
• Paychex Small Business Employment Watch: July 2025 2025-07-29 09:00
  

  The Paychex Small Business Jobs Index rose 0.17 pts to 99.82 in July, matching the 2025 YTD average and just -0.05 pts below its level from July 2024.

  • The Midwest (100.33) led all regions for the 14th straight month; the South (99.70) stayed below 100 for a third month.
  • Leisure and Hospitality (97.16) remained the weakest sector in the South, as it has for 13 of the past 14 months.
  • Tampa (100.76) topped all metros for the first time since March 2021, continuing its post-hurricane recovery.
  • Boston (100.60) posted the biggest MoM gain (+1.40 pts), its best performance in over four years.
  • West Coast metros Riverside (98.24), San Francisco (98.40), and Seattle (98.74) had the lowest metro index levels in July.

  

  Hourly earnings growth for US small business workers held at 2.74% YoY in July, marking the ninth consecutive month below 3%.

  • Weekly earnings growth rose to 2.76% YoY, the highest since January and up steadily for six straight months.
  • Weekly hours worked turned positive at 0.11% YoY, the first increase since August 2024; one-month annualized growth jumped to 2.32%.
  • The Midwest led all regions in hourly earnings (2.82%), weekly earnings (2.97%), and weekly hours worked (0.13%).
  • "Other Services (except Public Administration)" posted the strongest hourly earnings growth by sector at 3.33%, followed by Construction at 3.22%.
  • Leisure and Hospitality remained the weakest sector at 2.47% hourly earnings growth for the sixth straight month.
• Paychex Small Business Employment Watch: June 2025 2025-07-01 09:00
  

  The Paychex Small Business Jobs Index slipped -0.16 pts to 99.65 in June, marking another month of modest cooling in small business employment growth. The index is down -0.64 pts over the last 12 months.

  • The Midwest (100.15) led all regions for the 13th consecutive month, though all regions saw MoM declines; the West (98.89) was the weakest and fell below 99 for the first time since March 2021.
  • Ohio (101.04) topped all states, while Washington (98.06) and California (98.66) were the only states below 99, with Washington posting the largest one-month drop in nearly four years (-2.27 pts).

  

  • Education and Health Services (101.23) remained the top-performing sector for the 13th straight month despite the sharpest MoM decline (-0.48 pts).
  • Leisure and Hospitality dropped further to 97.76, its lowest level since March 2021.
  • Construction rose to 99.97, just under its 2025 YTD average, while Manufacturing gained +0.40 pts MoM to 98.80—the largest monthly increase among sectors.

  

  Hourly earnings growth for US small business workers held steady at 2.79% YoY in June, remaining just below 3% for the 10th time in the past 11 months.

  • Weekly earnings growth rose to 2.58% YoY, the fifth consecutive monthly increase, while weekly hours worked remained negative at -0.12% YoY.
  • The Midwest led hourly earnings growth at 2.91%, with Tennessee (4.59%) topping all states for the 8th straight month.
  • Tennessee also led in weekly earnings growth (4.79%) and was second in weekly hours worked growth (0.18%).
  • Construction led sectors in hourly earnings growth at 3.27%, while Leisure and Hospitality remained lowest at 2.52% despite showing improvement.
  • Manufacturing posted the strongest weekly earnings growth among sectors at 3.47% for the fourth straight month.
• Paychex Small Business Employment Watch: May 2025 2025-06-03 09:00
  

  The Paychex Small Business Jobs Index edged down -0.21 pts to 99.81 in May, indicating largely unchanged small business employment growth.

  

  • The Midwest (100.19) remained the strongest region for the 12th straight month and the only one above 100.
  • Texas (101.20) reclaimed the top spot among states, while California (99.36) remained below 100 for the 14th consecutive month despite modest gains.
  • Education and Health Services (101.71) led all sectors for the 12th month, continuing four years of strong job growth.
  • Construction dropped -0.68 pts to 99.69, its lowest reading since March 2021.
  • Leisure and Hospitality remained the weakest sector for the fourth straight month at 98.18.

  

  Hourly earnings growth for US small business workers slowed to 2.77% YoY in May, marking a new 4-year low and continuing a steady decline in wage growth.

  • The 3-month annualized hourly earnings growth dropped to 2.45%, its lowest since Dec 2020, while weekly earnings growth rose to 2.59% YoY, extending a 4-month uptrend.
  • Weekly hours worked remained negative YoY at -0.21%, with only 3 of the past 48 months showing growth.
  • The Midwest led regions in hourly (3.06%) and weekly (2.79%) earnings growth; the Northeast ranked last in both categories.
  • Tennessee (4.74%) topped states for hourly earnings for the 7th straight month, while North Carolina (1.44%) and Maryland (1.82%) were the weakest.
  • Other Services (3.37%), Construction (3.25%), and Manufacturing (3.05%) led sectors in hourly earnings; Leisure and Hospitality fell to last at 2.11%, its lowest since July 2015.
• Paychex Small Business Employment Watch: April 2025 2025-04-29 09:00
  

  The Paychex Small Business Jobs Index rose 0.27 pts to 100.02 in April, reaching its highest 3-month growth rate since February 2023 and showing only a -0.10 pt YoY decline.

  

  • The Midwest led all regions for the 11th straight month at 100.77, gaining 0.81 pts MoM and remaining the only region with YoY growth.
  • The West (99.53) stayed below 100 for the 13th month, with no meaningful change MoM, QoQ, or YoY.

  

  • Education and Health Services (101.16) remained the top-performing sector for the 11th month in a row.
  • Professional and Business Services jumped 0.82 pts to 100.36, the strongest monthly sector gain.
  • Leisure and Hospitality rose 0.78 pts to 98.63 but stayed last among sectors for the third straight month, continuing its post-pandemic slowdown.

  

  Hourly earnings growth slowed to 2.82% YoY in April, the lowest since May 2021, with one-month annualized growth (2.41%) falling below the annual rate for the first time in 2025.

  • Weekly earnings growth rose to 2.54% YoY, with 3Mo annualized growth hitting a 2-year high of 3.80%.
  • Weekly hours worked remained negative YoY at -0.17%, despite a one-month annualized gain of 2.62%.
  • The West led all regions in hourly earnings growth (3.04% YoY) for the 25th consecutive month, while the Northeast ranked last (2.68%) but led in weekly hours worked (0.12% YoY).
  • Other Services topped sectors in hourly earnings growth at 3.38%, but weak hours worked (-0.54% YoY) kept weekly earnings under 3% for 11 consecutive months.
  • Construction and Manufacturing led sectors in weekly earnings growth at 3.44% YoY; Leisure and Hospitality remained last in hourly earnings (2.16%), its lowest since July 2015.

Publications

Pace of U.S. Small Business Employment Remains Consistent in March

Mar 31, 2026

U.S. Small Business Wage Growth Remains Steady in February

Mar 03, 2026

U.S. Small Business Employment Trends Hold Steady to Start 2026

Feb 03, 2026

U.S. Small Business Employment Remains Consistent Throughout 2025

Jan 06, 2026

U.S. Small Business Employment Sees Modest Uptick in November

Dec 02, 2025

U.S. Small Business Employment Growth Remains Consistent as Weekly Hours Worked Reach Near-Decade High

Nov 04, 2025

Minimal Shifts in U.S. Small Business Employment in September

Sep 30, 2025

Hourly Wage Growth Among U.S. Small Business Workers Near Five-Year Low

Sep 02, 2025

U.S. Small Business Employment Holds Steady Through First Half of 2025

Jul 01, 2025

U.S. Small Business Job Growth Remains Largely Unchanged in May

Jun 03, 2025

U.S. Small Business Job Growth Remains Consistent in April

Apr 29, 2025

Paychex Small Business Jobs Index Shows Little Change in March and Levels Consistent with Last Several Quarters

Apr 01, 2025

U.S. Small Business Employment Remains Stable in February

Mar 04, 2025

Job Growth in U.S. Small Businesses Continues the Pace Seen in the Back Half of 2024

Feb 04, 2025

Pace of U.S. Small Business Job Growth Moderated in 2024

Jan 08, 2025

U.S. Small Business Job Growth Rate Remained Steady in November

Dec 03, 2024

Small Businesses Continue to Show Moderate Job Growth in October

Oct 29, 2024

Job Growth Moderates Slightly for U.S. Small Businesses in September

Oct 01, 2024