The Paychex Small Business Jobs Index fell -0.29 pts to 99.75 in March, slightly below the pace set at the end of the past two quarters.

• The national jobs index decelerated -1.10 ppts over the past year, equal to the average slowdown during the past year and half.
• The jobs index in all four regions landed below 100 in March for the first time in four years. Texas (100.85) continued to lead states for small business job growth in March.
• Education and Health Services (101.34) continued as the top sector for small business job growth for the 10th consecutive month in March.
• Last among sectors for small business employment growth, Leisure and Hospitality slowed to 97.85 March. Following several years of strong, post-pandemic growth, Leisure and Hospitality has reported < 99 since June 2024.
• Manufacturing (99.30) has gained 1.05 ppts during Q1 2025, best among sectors.

Small business hourly earnings growth accelerated from an 1-month annualized rate of 3.29% in February to 3.51% in March, outpacing annual growth for the fourth straight month.

• Weekly earnings growth (2.49% YoY) increased in March as one-month annualized growth (4.41%) reached a two-year high.
• Weekly hours worked growth decreased -0.36% YoY in March as weekly hours worked are reporting below pre-pandemic levels in 2025.
• The West (3.18% YoY) led regions for hourly earnings growth for the 22nd-straight month and has reported above three percent since February 2021.
• Construction (3.43% YoY) continued as the top industry for hourly earnings growth again in March and was the only sector to report positive weekly hours worked growth (0.07% YoY).
• Leisure and Hospitality (2.22% YoY) ranked last among sectors again in March and slowed to its lowest level in nearly a decade (2.14% YoY in July 2015). The industry was also the only sector to report a negative one-month annualized weekly hours worked growth rate in March.
• Manufacturing topped weekly earnings growth among sectors (3.13% YoY) as one-month annualized growth (5.11%) reached its highest level since September 2022.