The Paychex Small Business Jobs Index fell further by -0.21 to 99.68 in January, down -1.01 pts from a year ago.

• This is the sixth month out of the last seven to be below 100.
• All four regions fell with the South region down the most, down -1.75 to 99.37.
• Education and Health Services (101.72) continued as the top sector for small business job growth for the eighth-straight month in January.
• Financial Activities fell -1.45 pts in January to 99.58, its lowest level since June 2021.
• Leisure and Hospitality (98.74) has reported below 99 for seven consecutive months.
• Ranked last among sectors again in January, Manufacturing (97.13) slowed -1.12 pts to its lowest level since March 2021.

Hourly earnings growth moderated further to 2.87% YoY in January, down from 2.94% YoY in December.

• The three-month annualized growth has been below 3% since May 2024.
• Weekly earnings growth has quickly decelerated in recent months to 2.12% YoY in January 2025 – its lowest level since January 2019 (2.10% YoY). One-month and three-month annualized growth also both reported below one percent.
• At 3.21% YoY in January, Manufacturing led sectors for hourly earnings growth for the first time since February 2014.