According to the Paychex Small Business Employment Watch, U.S. employers with fewer than 50 employees continued to add jobs in June, though at a slower pace than in May. Hourly earnings growth for small business workers held steady at 3.16% in June.
“Small businesses continued to add jobs across the country in June and there was little change in wage inflation, which reflects relative stability for small businesses,” said John Gibson, Paychex president and CEO. “The trends in our wage data over the first half of 2024 are also signaling steady hourly earnings growth heading into the second half of the year.”
“While jobs are growing nationally, small businesses in some geographies and industries continue to face a challenging operating environment due to complex regulations, a tight labor market, and inflationary pressures,” Gibson added. “We are continuing to see the impact of these challenges in the West region, particularly in the state of California, which came in last among states for job growth in June. At the same time, our customers are telling us they are being more selective in the hiring process and searching for candidates who will boost their culture and bottom line.”
Jobs Index and Wage Data Highlights:
- The national jobs index continued to represent employment gains in June (100.29), though at a slower pace than May (100.58) and June 2023 (101.37).
- National hourly earnings growth held steady at 3.16% in June, consistent with the moderating trend reported during the first half of 2024.
- One- and three-month annualized hourly earnings growth reported 3.04% and 2.85% in June, respectively, slightly below the 12-month growth rate (3.16%).
- California (99.37) dropped to last among states in June and has reported an index level below 100 for three-straight months, indicating year-over-year job losses. Leisure and Hospitality ranked last among sectors analyzed in California in June, slowing 2.70 percentage points over the last quarter. Weekly hours worked growth in Leisure and Hospitality across the state was down 1.77% last month.
- The two largest industry sectors, Education and Health Services (102.18) and Professional and Business Services (100.20), increased their rate of small business employment growth from last month in June.
- Weekly earnings growth (2.96%) improved for the third consecutive month, though the increases have been marginal (0.03%).
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