Small business hiring and worker wages hold steady

Paychex data also shows three-month annualized increase in weekly hours worked
reached the highest level ever March 2021

Rochester, New York, November 29 February 2022 /PRNewswire/ — Employment and hourly earnings growth rates for small businesses in the US remained relatively steady in November, according to the latest Paychex | IHS Markit Small Business Employment Watch. The small business employment index fell slightly by -0.05% from the previous month to 99.38. The hourly earnings growth rate was 5.04%, unchanged from the previous month.

“While hiring rates and hourly earnings growth were little changed in November, data for the month showed interesting trends in hours worked. Annualized weekly hours worked growth was positive for the third month in a row, up 0.50% for the month, This could be a sign that small businesses are adapting to the current labor market and taking advantage of existing workers,” he said james divleyChief Regional Economist at IHS Markit.

“As U.S. businesses approach the end of the year, they will continue to grapple with inflationary pressures and a challenging labor market,” he said john gibson, President and CEO of Paychex. “They should remember that government programs can help, including employee retention tax credits, which can be a source of important support.”

The November report shows in more detail:

  • The national employment index was 99.38, down -0.05% from the previous month (-0.05% was the smallest monthly decline since the previous month March 2022).
  • Three-month annualized weekly growth in hours hits highest level since March 2021It rose to 0.77 percent in November.
  • Weekly earnings growth slowed slightly to 4.84%, after eight straight gains.
  • Leisure and hospitality ranks first in hourly earnings growth (6.38%) and last in weekly hours worked growth (-0.66%).
  • The South continues to lead U.S. regions in both small business job growth and worker hourly wage growth.
  • North Carolina Still the state with the best job growth for small businesses; Missouri replace Florida The fastest growing state for workers.
  • houston take over dallas Leading small business job growth in U.S. metropolitan areas; dallas and Miami It was the metro with the fastest growth in hourly earnings (6.69%).
  • Weekly hours worked down -0.79%, likely affected by Hurricane Ian Florida and -0.98% tampathe lowest levels among U.S. states and metropolitan areas, respectively.

Paychex solutions reach 1 in 12 US private sector employees, making Small Business Employment Watch the industry benchmark. Based on payroll data for approximately 350,000 Paychex customers with fewer than 50 employees, the monthly report provides an analysis of national employment and wage trends and examines regional, state, metro and industrial sector activity.

Full results for November, including an interactive chart detailing all data, are available at www.paychex.com/watch. The highlights are as follows.

National Employment Index

  • The national employment index was 99.38, a decrease of 0.05% from the previous month and a decrease of 1.32% from last year.
  • National index slows for ninth straight month, from 101.33 February 2022 to 99.38 inches November 2022.

National Wage Report

  • Hourly earnings rose 5.04% in November, unchanged from the previous month.
  • Weekly earnings growth slowed slightly to 4.84%, after eight straight gains.
  • Three-month annualized weekly growth in hours hits highest level since March 2021It rose to 0.77 percent in November.

Regional Employment Index

  • The South led regional job growth for the eighth straight month. The index came in at 100.64, more than a point and a half higher than the next highest in the Northeast.
  • Small business employment grew the slowest in the West in November (98.73).After 12 consecutive gains March 2021 pass February 2022growth rates in the West have slowed over the past nine months.

Regional Payroll Report

  • The South led the way in November with a 5.50 percent pace. While the South has been at the top of the region for employment and income growth for several months, weekly hours worked (-0.44%) have steadily slowed and finished last in November.
  • The Northeast has consistently posted hourly wage growth above 4 percent, but has ranked last among the regions over the past 13 months.

State Employment Index

  • North Carolina (102.40) leads the states for the fourth straight month. However, North Carolina The index is down from a year ago (-0.07%), the state’s first decline since last year March 2021.
  • Georgia November had the best monthly gain among the states (0.63%) as its index (100.52) climbed back above 100.
  • washington join in Ohio and the state of Wisconsin November’s index was below 98, the lowest in the state rankings. 3.56% lower than a year ago, washington Among the states, the 12-month rate of change was the lowest, although nearly all of the losses occurred over the last six months (-3.50%).

Note: Analysis is for the 20 largest states based on U.S. population.

National Wage Report

  • Missouri (6.58%) lead the states in hourly earnings growth, followed by Florida and Texasalso had an increase of more than six percent.
  • 3.62%, Virginia It is the only state with an hourly earnings growth rate of less than 4%, and it ranks last for the sixth month in a row.
  • Hourly wage growth was below 5 percent in 10 states in November, and above 5 percent in 10 states.
  • Weekly hours worked down -0.79%, likely affected by Hurricane Ian Floridathe lowest level among states.

Note: Analysis is for the 20 largest states based on U.S. population.

Metropolitan Employment Index

  • overtake dallas, houston Topped the Metro Index for the first time in nearly a decade (102.94). houston The largest one-month increase (0.49%) was seen among metros, while dallas The weakest (-0.67%) fell to 102.73.
  • Four West Coast Metros (seattle, san diego, San Franciscoand riverside) was below 98, down more than 3% from last year.
  • Its index fell to 99.58 in August from 103.15 in March, after a sharp decline in 2022. Atlanta It improved for three consecutive months and was back above 100 in November (100.36).

Note: Analysis is based on US population for the 20 largest metro areas.

Metropolitan Payroll Report

  • Both reported 6.69%, dallas and Miami November led the way for hourly earnings growth among metros. tampa (6.29%) and baltimore (6.27%) also increased by more than 6%.
  • While 12-month hourly wage increases were at tampa It has surpassed 6% since April, and the one-month annualized growth rate fell to its weakest level in two years (2.08%).
  • Increase in working hours per week tampa (-0.98%) remained last among metropolitan cities in November.
  • washington (3.68%) and Detroit (3.96%) was the only metro with an hourly wage growth rate below 4% in November.

Note: Analysis is based on US population for the 20 largest metro areas.

Industry Employment Index

  • Construction rose 0.37% in November to 98.47, the best one-month change in the industry and the best gain since April 2021.
  • Other services remained No. 1 in November at 101.96, despite its eighth straight decline and the lowest level of the index since July 2021.
  • The leisure and hospitality sector increased 0.14% to 100.02 in November, its first monthly gain since January. Despite the positive movement, the industry is still down 4.03% from a year ago.

Note: Analysis of seven major industries is provided.Definitions for each industry can be found Gentlemen. The other services (except public administration) industry category includes religious, civic and social organizations, and personal services, including auto and home repairs, salons, dry cleaners, and other businesses. The dark blue bars of the chart reflect the index level, and the light blue diamonds reflect the 12-month change.

Industry Wage Report

  • Leisure and hospitality ranks first in hourly earnings growth (6.38%) and last in weekly hours worked growth (-0.66%).
  • Improving for the 16th month in a row and ranking first for the 9th month in a row, construction weekly hours increased by 0.32% over last year. Additionally, the hourly earnings growth rate for the construction industry was 5.19%, which has been above 5% for the past six months.
  • Hourly wages for education and health services rose 4.21 percent in November, a new record since the report began in 2011.However, its growth has been the weakest among sectors since October 2021.

Note: Analysis of seven major industries is provided.Definitions for each industry can be found Gentlemen. The other services (except public administration) industry category includes religious, civic and social organizations, and personal services, including auto and home repairs, salons, dry cleaners, and other businesses.

For more on Paychex | IHS Markit Small Business Employment Watch, visit www.paychex.com/watch and Sign up Receive monthly Employment Watch alerts.

*Information about the occupations included in the industry data can be found at Bureau of Labor Statistics website.

About Paychex | IHS Markit Small Business Employment Watch

Alipay | IHS Markit Small Business Employment Watch Published monthly by Paychex, Inc., a leading provider of comprehensive human capital management software solutions for human resources, payroll, benefits, and insurance services, and IHS Markit, IHS Markit is a global leader in critical information, analytics, and expertise. Specific to small businesses with fewer than 50 employees, the monthly report provides analysis of national employment and wage trends and examines regional, state, metro and industrial sector activity. This powerful tool leverages payroll data from approximately 350,000 Paychex customers to provide real-time insight into the small business trends driving the US economy.

About Paychex

Paychex Corporation (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for HR, payroll, benefits and insurance services. By combining innovative software-as-a-service technology and a mobile platform with dedicated, personalized services, Paychex enables business owners to focus on growing and managing their business.With 50 years of industry expertise, Paychex serves more than 730,000 payroll customers as of May 31, 2022 in the US and Europe, and pays one out of every 12 U.S. private sector employees.Learn more about Paychex by visiting www.paychex.com and keep in touch Twitter and LinkedIn.

IHS Markit (NYSE: INFO ) is a global leader in providing critical information, analysis and solutions for the major industries and markets that drive the global economy. The company provides next-generation information, analytics and solutions to clients in the commercial, financial and government sectors, improving their operational efficiency and delivering insights to make informed, confident decisions. IHS Markit has more than 50,000 corporate and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.Headquartered in LondonIHS Markit is committed to sustainable profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2021 IHS Markit Ltd. All rights reserved.

media contact

Chris Muller
Paychex Company
+1 585-338-4346
[email protected]
@Paychex

kate smith
IHS Markit
+1 781-301-9311
[email protected]

SOURCEPaychex, Inc.



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