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%.