ROCHESTER, N.Y., Aug. 1, 2017 /PRNewswire/ -- The latest
Paychex | IHS Markit Small Business Employment Watch shows another
monthly slowdown in small business job growth, while wages continue
to rise at a steady pace. The Small Business Jobs Index dropped to
99.98 in July, 0.70 percent lower than in July 2016. An index level of 100 equates to
moderate job gains, represented by the employment growth levels
seen during the 2004 base year. National hourly earnings in July
were $25.90, an increase of 2.94
percent ($0.74) year-over-year.
"At 99.98, the Small Business Jobs Index slowed for the fifth
consecutive month, falling below the national baseline for the
first time since 2011," said James
Diffley, chief regional economist at IHS Markit.
"Though job growth has continued to moderate following last
year's post-election upswing, wage growth is accelerating at a
decent pace," said Martin Mucci, Paychex president and CEO. "We're
keeping a close eye on the potential impact of minimum wage
increases on job growth and hours worked, as well as monitoring the
effects of a tightening labor market."
National Jobs Index
- The baseline index level of 100, represented by the employment
growth levels seen during the 2004 base year, equates to moderate
job gains
- The pace of small business growth is 0.70 percent slower this
July compared to last, mirroring June's year-over-year result.
- The Small Business Jobs Index declined 0.52 percent during the
past quarter.
National Wage Report
- After slowing late last year, hourly earnings have accelerated
in 2017, with annual growth rising from 2.74 percent in January to
2.94 percent in July.
- With hours worked increasing, weekly earnings are up 3.12
percent over last year.
Regional Jobs Index
- At 100.66, the South remains the strongest region for small
business employment growth, but has decreased 0.94 percent during
the past four months.
- Down 0.21 percent year-over-year, the Midwest has the best
growth rate among regions. The Midwest also has the only positive
growth over its base year, up 0.89 percent.
Regional Wage Report
- Annual wage increases range from 3.70 percent in the West to
2.68 percent in the South.
- Up 2.74 percent year-over-year, the Midwest is the only region
to not see an acceleration in hourly earnings growth as it has been
relatively flat since April.
State Jobs Index
- Washington had the only
sizable gain in July among states, after declining nine consecutive
months. The state continues to show the weakest year-over-year
growth, -3.28 percent.
- Tennessee remains the top
state for small business job growth with the highest 12-month
growth rate, 1.48 percent above last year.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
State Wage Report
- With a recent and sizable minimum wage increase in Arizona, hourly earnings are up 5.12 percent
year-over-year, far outpacing the second- ranked state,
California, at 3.78 percent.
- Weekly hours worked decreased the furthest among states in
Arizona, down 0.56 percent from
last year.
- Washington is ranked first
among states in annual gains for weekly hours and earnings.
Note: Analysis is provided for the 20 largest states based on
U.S. population
Metropolitan Jobs Index
- Though still 0.75 percent below its base-year level,
Houston improved for the seventh
time in the last eight months to 99.70. With energy markets
strengthening, the metro continues to recover from the record low
set in November 2016 (96.14).
- At 101.19, Philadelphia is up
0.96 percent from last July. The Philadelphia index ranks third among metros in
July and has the best 12-month growth rate.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Metropolitan Wage Report
- Both below two percent, St.
Louis and Philadelphia have
the weakest hourly earnings annual growth among metros.
- Nearing five percent, Phoenix,
followed closely by Riverside,
lead hourly earnings growth among metros. Phoenix and Riverside diverge in weekly earnings growth,
however, as employees in Phoenix
are working fewer hours than last year, while Riverside employees have seen an increase in
hours worked.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Industry Jobs Index
- Leisure and Hospitality had the worst one-month and three-month
growth rates among industries. Yet, at 100.02, it remains well
ahead of its base-year index level.
- At 100.29, Construction edged Education and Health Services
(100.28) for second place among metros.
Note: Analysis is provided for seven major industry
sectors.
Industry Wage Report
- Leisure and Hospitality is exhibiting strong year-over-year
growth in all three wage components; combining hours worked and pay
rate, weekly earnings are up 4.95 percent, the best among industry
sectors.
- On the other hand, Education and Health Services is lagging in
both hourly earnings and weekly hours growth, as weekly earnings
are up just 2.70 percent from last July.
Note: Analysis is provided for seven major industry
sectors.
For more information about the Paychex | IHS Markit Small
Business Employment Watch, including interactive charts detailing
all data at a national, regional, state, metro, and industry level,
visit https://www.paychex.com/employment-watch/ and sign up to
receive monthly Employment Watch alerts.
*Information regarding the professions included in the
industry data can be found at the Bureau of Labor Statistics
website.
About the Paychex | IHS Markit Small Business Employment
Watch
The Paychex | IHS Markit Small Business Employment
Watch is released each month by Paychex, Inc., a leading provider
of payroll, human resource, insurance, and benefits outsourcing
solutions for small-to medium-sized businesses, and IHS Markit, a
world leader in critical information, analytics, and expertise.
Focused exclusively on small business, the monthly report offers
analysis of national employment and wage trends, as well as
examines regional, state, metro, and industry sector activity.
Drawing from the payroll data of approximately 350,000 Paychex
clients, this powerful tool delivers real-time insights into the
small business trends driving the U.S. economy.
About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a
leading provider of integrated human capital management solutions
for payroll, HR, retirement, and insurance services. By combining
its innovative software-as-a-service technology and mobility
platform with dedicated, personal service, Paychex empowers small-
and medium-sized business owners to focus on the growth and
management of their business. Backed by 45 years of industry
expertise, Paychex serves approximately 605,000 payroll clients as
of May 31, 2017 across more than 100
locations and pays one out of every 12 American private sector
employees. Learn more about Paychex by visiting www.paychex.com,
and stay connected on Twitter and LinkedIn.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (NASDAQ: INFO) is a world leader in critical
information, analytics and expertise for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key business
and government customers, including 85 percent of the Fortune
Global 500 and the world's leading financial institutions.
Headquartered in London, IHS
Markit is committed to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd and/or
its affiliates. All other company and product names may be
trademarks of their respective owners © 2017 IHS Markit Ltd. All
rights reserved.
Media Contacts
Lisa Fleming
Paychex, Inc.
585-387-6402
lfleming@paychex.com
@PaychexNews
Kate Smith
IHS Markit
781-301-9311
Katherine.smith@ihsmarkit.com
Tess Alberts
Eric Mower + Associates
716-880-1488
talberts@mower.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/paychex--ihs-markit-small-business-employment-watch-small-business-employment-growth-continues-to-moderate-wages-on-the-rise-300497275.html
SOURCE Paychex, Inc.