U.

S. small businesses demonstrated a rise in job growth during April, marking the second consecutive month of gains amidst ongoing economic uncertainty, according to the latest Paychex Small Business Employment Watch. The national jobs index, reflecting employment growth in U.

S. small businesses with fewer than 50 employees, increased by 0.35 percentage points from March to April, reaching 99.16. This represents the largest one-month increase since February 2025, while hourly earnings growth remained steady at 2.71% for the 18th consecutive month, staying below three percent.

Weekly hours worked growth was also positive for the second consecutive month in April, at 0.18%, a trend that has occurred only twice in the last five years.

John Gibson, Paychex president and CEO, stated that despite an evolving set of challenges and an increasingly uncertain macroenvironment, the latest employment data from U.

S. small business clients indicate encouraging signs. He noted that consecutive gains in the pace of employment and weekly hours worked growth in March and April demonstrate remarkable resilience among small business owners. Paychex remains focused on supporting its clients through complexities and opportunities, including the 2025 tax cuts, to position them for long-term success.

Gibson added that overall employment across the company’s client base continues to be stable. While moderate employment growth among Paychex clients with 50 or more employees remains consistent, smaller clients experienced an increase in the job growth rate during March and April.

Since February, the national Small Business Jobs Index (99.16) has increased by 0.39 percentage points. In addition to its largest one-month increase since February 2025, it marks the largest two-month gain in more than three years, specifically since February 2023.

All four regions experienced an increased pace of small business employment growth in April. The Northeast saw the largest one-month gain at 0.56 percentage points, followed closely by the West with a 0.50 percentage point increase. The Midwest, with an index of 99.55, maintained its position as the top region for small business job growth for the 23rd consecutive month.

Among the largest states and metropolitan areas, Wisconsin led with a jobs index of 100.84, and Philadelphia led with an index of 100.09 for small business job growth in April.

The Construction industry, with a 98.97 jobs index, experienced the largest one-month gain among all industries, increasing by 0.64 percentage points. Construction’s jobs index was stronger in the Midwest (101.00) and Northeast (100.43) compared to the South (98.19) and West (96.63).

Weekly earnings growth increased again in April to 2.90%, reaching its highest level since May 2024 (2.92%), with one-month and three-month annualized growth reporting above four percent.

The Paychex Small Business Employment Watch has served as a source of employment trends for U.

S. small businesses with fewer than 50 employees since 2014. The Employment Watch website provides interactive charts and historical data for its jobs index and wage data components, along with the methodology for both analyses.

Paychex, Inc. (Nasdaq: PAYX) is an HR leader offering comprehensive Human Capital Management (HCM) solutions for organizations of all sizes. The company provides HR advisory and employee solutions, serving approximately 800,000 customers in the U.

S. and Europe and processing payroll for 1 out of every 11 American private sector workers.