Job Gains Continue Among U.S. Small Businesses to Start 2024
January 30 2024 - 8:30AM
Business Wire
According to the Paychex Small Business Employment Watch,
January marks the 34th consecutive month of job growth for U.S.
small businesses. Wage growth for workers continues to stabilize in
the new year with hourly earnings growth remaining essentially
unchanged since November at 3.47%.
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January marks the 34th-straight month of
continued job growth for U.S. small businesses. Hourly wage growth
for workers remains unchanged since November. (Graphic: Business
Wire)
“As we begin 2024, job growth in small businesses is continuing
at a steady pace,” says John Gibson, Paychex president and CEO.
“Nationally, wage growth remains stable despite 65 minimum wage
changes taking effect in various states and localities on January
1. Small and medium-sized businesses remain resilient in the face
of many challenges, including a tight labor market for qualified
workers, the cost of and access to capital, rising employer
regulations, and cost of providing benefits to attract and retain
employees.”
“Several macroeconomic data sources point to a strong close to
2023,” adds Gibson. “Gross domestic product (GDP) increased 3.3% in
the fourth quarter while the annual unemployment rate hit its
lowest point since 1969, signaling federal policymakers have
managed to bring down inflation and secure a ‘soft landing’ without
major repercussions for workers or the economy. Policymakers need
to address the cost and access to growth capital for small
businesses, as well as the long term-issues impacting the labor
market — including the participation rate and the quality of the
workforce — to support the continued growth of small businesses,
which drives the U.S. economy.”
Jobs Index Highlights:
- At 100.69, the national index indicates continued job growth
but at a slower pace.
- With indexes above 100, all regions continue to report positive
job growth in January. The South (101.12) leads the pace of
regional job growth in January and has ranked first among regions
for 16 of the last 17 months.
- Leading the South, Tennessee (102.19), Texas (102.06), and
Virginia (102.01) are all reporting index levels above 102 in
January.
- Ranked first among top U.S. metros in January, Dallas jumped
1.60 percentage points to 103.30 and has now increased its job
growth rate for three-straight months.
- Education and Health Services (101.91) leads industries for
small business job growth to start 2024. Indicating strong,
sustained job growth, this sector’s jobs index was above 102 for 33
consecutive months leading up to January 2024.
Wage Data Highlights:
- At 3.47%, hourly earnings growth has stabilized and is
essentially unchanged over the past three months (3.48% in December
2023, 3.49% in November 2023).
- At 4.03%, the West leads regional hourly earnings growth for
the eighth consecutive month. The South (3.33%) has the lowest
hourly earnings growth rate among regions.
- Washington’s 5.17% hourly earnings growth in January is the
highest among states for the sixth consecutive month.
- Seattle reports 5.27% hourly earnings growth in January, the
fifth consecutive month over five percent, and ranked first among
top U.S. metros.
- Construction has the strongest weekly hours worked among
sectors for January, up 0.32% since December. Leisure and
Hospitality also experienced strong one-month hourly earnings
growth (5.10%).
The complete Small Business Employment Watch results for January
2024, including interactive charts detailing the data at a
national, regional, state, metro, and industry sector level are
available at www.paychex.com/watch. Learn more and sign up to
receive monthly Employment Watch alerts.
About the Paychex Small Business Employment Watch
The Paychex Small Business Employment Watch is released each
month by Paychex, Inc. Focused exclusively on businesses with less
than 50 workers, 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 industry
benchmark delivers real-time insights into the small business
trends driving the U.S. economy.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company
delivering a full suite of technology and advisory services in
human resources, employee benefit solutions, insurance, and
payroll. The company serves approximately 740,000 customers in the
U.S. and Europe and pays one out of every 12 American private
sector employees. The more than 16,000 people at Paychex are
committed to helping businesses succeed and building thriving
communities where they work and live. Visit paychex.com to learn
more.
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Media Contacts Chris Muller Paychex, Inc. 585-338-4346
cmuller@paychex.com @Paychex Colleen Bennis Matter Communications
Account Director (585) 666-9510 cbennis@matternow.com
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