The rate of job growth and hourly earnings growth held relatively steady at U.S. small businesses in November, according to the latest Paychex | IHS Markit Small Business Employment Watch.
“As U.S. businesses approach the end of the year, they’re continuing to contend with inflation pressures and a challenging labor market,” said John Gibson, Paychex president and CEO, in a release. “They should remember government programs are available to help, including the Employee Retention Tax Credit, which could be a source of significant support.”
In further detail, the November report showed:
- At 99.38, the national jobs index moderated 0.05 percent from last month and 1.32 percent from last year (-0.05 percent is the smallest monthly decrease since March 2022);
- Three-month annualized weekly hours worked growth reached its highest level since March 2021, increasing to 0.77 percent in November;
- After eight consecutive increases, weekly earnings growth slowed slightly to 4.84 percent;
- Leisure and hospitality rank first among sectors in hourly earnings growth (6.38 percent) and last in weekly hours worked growth (-0.66 percent);
- The South continues to lead U.S. regions in small business job growth and hourly earnings growth for workers;
- North Carolina remained the top state for small business job growth; Missouri replaced Florida as the top state for worker hourly earnings growth;
- Houston overtook Dallas to lead U.S. metros in small business job growth; Dallas and Miami are the top metros for hourly earnings growth (6.69 percent), and
- Likely an impact from Hurricane Ian, weekly hours worked growth is down -0.79 percent in Florida and -0.98 percent in Tampa, the lowest level among U.S. states and metros, respectively.
Drawing from the payroll data of approximately 350,000 Paychex clients with fewer than 50 employees, the monthly report offers analysis of national employment and wage trends, as well as examines regional, state, metro and industry sector activity.
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