ROCHESTER, N.Y., Oct. 30, 2018 /PRNewswire/ -- The
Paychex | IHS Markit Small Business Employment Watch data for
October again reflects the tight labor market with a dip in job
growth and uptick in wages. Down 0.06 percent from last month at
99.12, the Small Business Jobs Index has slowed 1.28 percent over
the past two years, consistent with a declining rate of
unemployment in the same timeframe. The rate of hourly earnings
growth in October stands at 2.41 percent ($0.63), increasing for the second month in a
row.
"The national index has dropped 0.77 percent in the past year
and 1.28 percent in the past two years," said James Diffley, chief regional economist at IHS
Markit. "This slowdown in small business employment growth has
coincided with the sharp fall in unemployment over the past two
years."
"According to the latest Paychex Business Sentiment Report,
released yesterday, business owners rank their ability to fill open
positions with qualified candidates as a top challenge," said
Martin Mucci, Paychex president and
CEO. "With employment growth continuing to show moderate declines,
we're seeing first-hand the impact of the tightening labor market
on small businesses."
Broken down further by geography and industry, the October
report showed:
- The top regions for employment growth and wage growth,
respectively, are the South and West.
- Texas ranks highest among
states for jobs growth; Arizona
ranks first in wage growth.
- Denver remains first among
metros in jobs growth; Phoenix
regained the lead in wage growth.
- The index for Construction has now been above 100 for seven
years.
The complete results for October, including interactive charts
detailing all data at a national, regional, state, metro, and
industry level, are available at www.paychex.com/employment-watch/.
Highlights are available below.
National Jobs Index
- Small business job gains continue to slow, declining 0.06
percent further in October to 99.12.
- The national index has fallen by 1.65 percent since its recent
peak in February 2017
National Wage Report
- At 2.41 percent, hourly earnings growth increased for the
second straight month.
- Weekly earnings growth slipped to 2.53 percent, impacted by the
decrease in weekly hours worked growth, which fell for the first
time since 2016.
Regional Jobs Index
- The Northeast and Midwest had the steepest declines, down the
most among regions in October and from last year.
- The West ranks second among regions, at 99.51, but is the only
region to show year-over-year improvement in the pace of small
business job growth.
Regional Wage Report
- The West continues to lead hourly earnings growth at 3.24
percent, while the other regions are less than 2.50 percent.
- The Midwest has shown a marked acceleration in hourly earnings
growth during the past two months, improving from 2.05 percent to
2.47 percent.
State Jobs Index
- Leading all states, Texas and
Arizona had strong gains in
October and are the only two states with positive year-over-year
growth.
- Pennsylvania (98.00) and
Massachusetts (98.09) trail all
states in small business employment growth.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
State Wage Report
- At 3.41 percent in October and averaging 3.42 percent during
2018, hourly earnings growth in California has been very consistent.
- Above three percent in October
2017, Texas' hourly
earnings growth has decelerated quickly to 1.31 percent.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
Metropolitan Jobs Index
- Denver and Phoenix lead in job gains, with Dallas, Houston, and Tampa also showing strong growth with index
levels above 100.
- With its fourth strong gain in the past six months,
San Francisco improved to 99.68
and is up 2.31 percent from last October.
- At 97.36, Philadelphia has
fallen to the lowest metro ranking, down nearly two percent during
the past quarter.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Metropolitan Wage Report
- Phoenix; Riverside, CA; and Denver lead metros with wage growth above four
percent.
- Houston and Dallas have the lowest hourly earnings growth
rates among metros.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Industry Jobs Index
- At 97.84 and down 0.42 percent in October, Manufacturing slowed
further as the lowest-ranked sector.
- At 100.10 and very steady during the past quarter, Construction
has now been above 100 for seven years.
Note: Analysis is provided for seven major industry
sectors.
Industry Wage Report
- After strong gains in 2017, wage growth in the Other Services
(except Public Administration) sector has slowed dramatically. It
is currently below one percent in October
2018.
- Like job growth, wage growth in Construction has been solid and
consistent. Hourly earnings growth has been just above three
percent since April 2017.
Note: Analysis is provided for seven major industry
sectors.
For more information about the Paychex | IHS Markit Small
Business Employment Watch, visit 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, benefits, human resources, 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 more than 45
years of industry expertise, Paychex serves over 650,000 payroll
clients as of May 31, 2018, across
more than 100 locations in the U.S. and Europe, 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 solutions 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 business and government
customers, including 80 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 © 2018 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 Flynn
Mower
716-880-1488
tflynn@mower.com
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SOURCE Paychex, Inc.