According to the Paychex Small Business Employment Watch for September, job growth among U.S. small businesses with fewer than 50 employees remains largely unchanged over the last year. The Small Business Jobs Index, a primary component of the Paychex report that measures the pace of job growth using payroll data from the company’s small business customers, has fluctuated just over a half percentage point over the last 12 months.
Meanwhile, hourly earnings growth for U.S. small business workers also remains largely consistent and – at 2.68% in September – is below three percent for the 11th consecutive month.
“Our latest small business employment data once again indicates a steady labor market over the past year,” said John Gibson, Paychex president and CEO. “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.”
Jobs Index and Wage Data Highlights
- The national Small Business Jobs Index in September was 99.52 – 0.31 percentage points below August.
- Although remaining below three percent, national hourly earnings growth rose 0.05 percentage points from August to 2.68% in September, marking its first increase since October 2024.
- The Midwest has led regions for small business employment growth for the past 16 months, including a 100.02 jobs index for September. Bolstering the region, Ohio (100.87) and Indiana (100.64) are the only states to report year-over-year job gains in September. Ohio has been among the top two states for small business employment growth for the past six months.
- September marks the 16th consecutive month for Education and Health Services (101.06) as the top sector for small business job growth. Following Education and Health Services, Financial Activities (100.10) is the only other sector reporting year-over-year job gains in September.
More Information
For more information about the Paychex Small Business Employment Watch, visit the website and sign up to receive monthly Employment Watch alerts.
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