The Paychex Small Business Jobs Index declined -0.10 pts MoM to 99.13 in August 2026 and was -0.70 pts YoY, remaining close to its 2026 YTD average as small business employment growth moderated.

• The national jobs index decreased to 99.13 (-0.10 pts MoM), remaining broadly in line with its 2026 YTD average of 99.20 and indicating relatively little change in the recent pace of small business employment growth.

• On a YoY basis, the index was -0.70 pts from 99.83 in August 2025, showing that small business employment growth remained weaker than a year earlier.

• The Midwest reclaimed the top regional position with an index of 99.48, while the Northeast fell -0.41 pts MoM to 99.32. The West increased +0.47 pts MoM to 99.02, recording the strongest positive regional movement highlighted in the release.

• The South declined to 98.77, its lowest reading since March 2021, indicating particularly weak small business employment growth in the region compared with recent years.

• Arizona led states at 100.25 and has ranked among the top three with an index above 100 for four consecutive months. Illinois ranked second at 100.16 and was the only other state above 100 in August.

• Washington recorded the largest one-month, three-month and 12-month change rates among states in August, highlighting the strongest improvement across each of the periods tracked in the release.

• Education and Health Services reclaimed the top sector position at 99.88 and has ranked among the top two sectors every month since February 2023, while Professional and Business Services posted the largest monthly gain at +0.23 pts to 99.25.

• Leisure and Hospitality remained the weakest sector at 98.08 after declining -0.43 pts MoM and has now registered below 99 in 26 of the past 27 months, continuing its prolonged period of relatively weak employment growth.

Hourly earnings growth increased to +2.89% YoY in August, while weekly earnings growth reached +3.00% YoY and weekly hours worked rose +0.07% YoY, showing firmer earnings growth alongside continued positive hours growth.

• Hourly earnings growth edged up to +2.89% YoY in August, while one-month annualized growth reached +3.00% and has been at or above 3% for five consecutive months, despite annual hourly growth remaining below 3% for 24 straight months.

• Weekly earnings growth reached +3.00% YoY, while one-month annualized growth has remained above 3% since February 2026, indicating sustained stronger short-term momentum in weekly earnings.

• Weekly hours worked increased +0.07% YoY, extending positive growth to six consecutive months for the first such streak in nearly six years, dating back to October 2020.

• The Midwest led regions in hourly earnings growth at +3.06% YoY, narrowly ahead of the Northeast at +3.05%, while the West remained the weakest region at +2.75%.

• The South led regional weekly earnings growth at +3.16% YoY, with one-month annualized growth exceeding 4% in five of the past six months. All regions recorded weekly earnings growth of at least 3% in August.

• Tennessee led states in hourly earnings growth (+4.71% YoY), weekly earnings growth (+5.29%), and weekly hours worked growth (+0.48%). Indiana followed with +4.20% hourly earnings growth and has remained above 4% since December 2025.

• All states recorded hourly earnings growth of at least +2.00% YoY, with Georgia the weakest at +2.00%. Pennsylvania ranked 18th at +2.39% and was last in both weekly earnings growth (+2.00%) and weekly hours worked growth (-0.38%).

• Construction led sectors in hourly earnings growth at +3.30% YoY, while Manufacturing weekly earnings growth reached a three-year high of +3.80% and remained the top-ranked sector for an 18th consecutive month. Education and Health Services ranked last across hourly earnings (+2.46%), weekly earnings (+2.10%), and hours worked (-0.19%).