According to the latest Paychex Small Business Employment Watch, job growth among U.
S. small businesses with fewer than 50 employees has remained largely consistent over the past year, with hourly earnings growth also stable at 2.68% in September.
The Small Business Jobs Index, a key component of the Paychex report that tracks job growth using payroll data from the company’s small business customers, has fluctuated by just over half a percentage point in the last 12 months. Concurrently, hourly earnings growth for U.
S. small business workers has remained consistent, staying below three percent for the 11th consecutive month in September.
John Gibson, Paychex president and CEO, commented, “Our latest small business employment data once again indicates a steady labor market over the past year. This consistency reflects continued resilience from small businesses across the U.
S. While we’re observing little change in our national data, the Midwest continues to stand out and is the only region consistently delivering job growth over the past year and beyond.”
The national Small Business Jobs Index registered 99.52 in September, a 0.31 percentage point decrease from August. Despite remaining below three percent, national hourly earnings growth saw a 0.05 percentage point rise from August to 2.68% in September, marking its first increase since October 2024.
Regionally, the Midwest has led small business employment growth for 16 consecutive months, reporting a 100.02 jobs index for September. Within this region, Ohio (100.87) and Indiana (100.64) were the only states to show year-over-year job gains in September. Ohio has consistently ranked among the top two states for small business employment growth for the past six months.
In terms of sectors, Education and Health Services (101.06) maintained its position as the top sector for small business job growth for the 16th consecutive month. Following this, Financial Activities (100.10) was the only other sector to report year-over-year job gains in September.
Paychex, Inc. (Nasdaq: PAYX), a digitally driven HR leader, produces the monthly Small Business Employment Watch. The report, which focuses exclusively on businesses with fewer than 50 workers, offers analysis of national employment and wage trends, along with examinations of regional, state, metro, and industry sector activity. Drawing from the payroll data of approximately 350,000 Paychex clients, this benchmark provides real-time insights into the small business trends driving the U.
S. economy. Paychex serves approximately 800,000 customers in the U.
S. and Europe, paying 1 out of every 11 American private sector workers.
