U.S. Small Business Job Growth Steady in April

According to the Paychex Small Business Employment Watch, job growth in U.S. small businesses with fewer than 50 employees ticked up slightly in April, gaining 0.27 percentage points to an index level of 100.02. The Small Business Jobs Index, a primary component of the Employment Watch report, has averaged 99.99 over the past 12 months, indicating little change in small business labor market over the last year. Hourly earnings growth for U.S. small business workers, meanwhile, slowed to its lowest level since May 2021 at 2.82%.

“Our April jobs data signals a small business labor market that remains stable as business owners navigate the evolving macroenvironment,” said John Gibson, Paychex president and CEO. “We are seeing no signs of a recession in our data as many small business owners are keeping their workforce levels consistent. Many leaders appear to be taking a wait-and-see approach to hiring until the macroenvironment settles and they have a better understanding of how any changes will impact their short and long-term growth.”

“As businesses continue to face new and ongoing challenges, we remain steadfast in our mission to help them succeed,” Gibson added. “Our recent acquisition of Paycor unlocks even more opportunities for us to help organizations of all sizes manage their workforce during an uncertain time.”

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Jobs Index and Wage Data Highlights

• The Small Business Jobs Index gained 0.27 percentage points to 100.02 in April and has averaged an index level of 99.99 over the past 12 months.
• Hourly earnings growth for workers slowed to its lowest level (2.82%) since May 2021.
• Weekly hours worked growth (-0.17%) remained negative in April despite one-month annualized growth of 2.62%.
• All four regional jobs indexes improved in April, led by a 0.81 percentage-point gain in the Midwest. The Midwest remains the top region for small business job growth for the 11th-straight month.
• Ohio spiked 2.24 percentage points to an index level of 101.94 in April. Ranked first among states for the first time since reporting began in 2014, significant job growth gains in Trade, Transportation, and Utilities in the state helped push Ohio to the leader position.
• With an index level of 102.35, Minneapolis reported strong job gains again in April and topped the state rankings for the second consecutive month.
• Professional and Business Services improved 0.82 percentage points to a jobs index level of 100.36, marking the best one-month gain among sectors in April.

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Source: Businesswire