The latest Paychex Small Business Employment Watch indicates a modest rise in the small business employment growth rate for November, with the Small Business Jobs Index reaching 99.38 and hourly earnings growth maintaining consistency at 2.66%.
The Small Business Jobs Index, which tracks payroll data from Paychex clients with fewer than 50 employees, increased by 0.11 percentage points from October. This upward movement contributes to an overall picture of stability in the small business sector, despite the index being down 0.53 percentage points compared to November of the previous year.
Hourly earnings growth also saw a marginal increase, settling at 2.66%. This marks the 16th consecutive month that hourly earnings growth has remained below three percent, a trend that began in August 2024.
John Gibson, President and CEO of Paychex, commented on the findings, stating, “November’s slight increase in the jobs index reinforces the stability we’ve seen throughout 2025. Small businesses with fewer than 50 employees have navigated a challenging year and continue to cite finding and retaining qualified talent as a top business challenge. Hourly earnings growth has stabilized at 2.66%, remaining below three percent for the 16th-straight month, which is helping many employers plan more effectively.”
Geographically, the Midwest region continued its lead in small business employment growth with an index of 99.79, maintaining this position for the 18th consecutive month. Indiana led all states with a jobs index of 101.22, showing a gain of 1.54 percentage points over the past quarter. Among metropolitan areas, Phoenix topped the list with an employment growth index of 100.34, followed closely by Philadelphia (100.32) and Dallas (100.11).
In terms of industry sectors, Education and Health Services recorded the highest small business job growth for the 18th month in a row, with an index of 100.64. Conversely, the Manufacturing sector experienced a slowdown, decreasing by 0.73 percentage points to 98.32, placing it last among the tracked sectors for November.
Since its inception in 2014, the Paychex Small Business Employment Watch has served as a resource for employment trends among U.
S. small businesses. The monthly report analyzes national employment and wage trends, drawing insights from the payroll data of approximately 350,000 Paychex clients. Paychex, Inc. (Nasdaq: PAYX) is an HR solutions provider offering comprehensive human capital management (HCM) solutions to approximately 800,000 customers across the U.
S. and Europe.
