The latest data from Paychex shows that employment trends among U.S. small businesses remained relatively stable in February, though wage growth continues to stay below the three-percent mark. According to the Paychex Small Business Employment Watch, the Small Business Jobs Index registered 98.77 in February, reflecting steady hiring activity among companies with fewer than 50 employees.
Hourly earnings growth for small business workers reached 2.78% in February, marking a slight increase from previous months. However, wage growth has remained below three percent for 16 consecutive months, indicating a sustained period of modest pay increases across the small business sector. The analyzes payroll data from a subset of Paychex’s U.S. clients, offering insights into employment patterns among smaller organizations.
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John Gibson, President and CEO of Paychex, said the company continues to see consistent hiring trends among its clients. He noted that while overall job growth has been stable, there has been slight expansion among businesses with more than 50 employees in recent months. Gibson also suggested that the modest rise in hourly earnings growth could be tied to minimum wage increases that took effect on January 1 across 19 states and 49 cities and counties.
The highlights several key trends shaping small business employment:
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Since its launch in 2014, the Paychex Small Business Employment Watch has served as a key benchmark for understanding workforce trends among small businesses. The combines job growth data with wage metrics to provide a monthly snapshot of hiring activity, pay trends, and regional economic conditions affecting small employers across the United States.
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