Press release
Increase in COVID-19 Cases Spur Decline in Small Business Jobs and Wage Growth
New report by Paychex and IHS Markit indicates the South leads all regions in employment growth and shows continued strength for jobs and wage growth in the
About this update from Paychex, Inc.
[{"type":"text","content":"New report by Paychex and IHS Markit indicates the South leads all regions in employment growth and shows continued strength for jobs and wage growth in the construction industry\n\n\nROCHESTER, N.Y., Jan. 8, 2021 /PRNewswire/ -- The latest Paychex | IHS Markit Small Business Employment Watch benchmark report reveals the effect of increasing COVID-19 cases on small businesses in the U.S. The Jobs Index shows a slowing of 0.24 percent in December to 94.06, a decrease of 4.18 percent from the year prior. A decline in weekly hours worked and hourly earnings growth decelerating to 2.63 percent brought national weekly earnings growth to 2.42 percent.\n\n \n \n \n \n \n \n\n \n\"The winter season brought a surge in COVID-19 cases and with it a retreat in jobs growth,\" said James Diffley, chief regional economist at IHS Markit.\n\"The new pandemic stimulus package has come at the right time for business owners. COVID-19 cases continue to grow and many state and local restrictions remain in place, limiting business activity in some communities,\" said Martin Mucci, Paychex president and CEO. \"The second round of Paycheck Protection Program loans, simplified forgiveness for new and existing PPP loans, and an extension and expansion of the Employee Retention Tax Credit are all significant measures to help businesses weather the months ahead.\"\nIn further detail, the December report showed: \nThe South was the only region to improve job growth in December (up 0.04 percent). Florida regained its position as the top-ranked state, up 0.28 percent with an index of 97.00. Tennessee improved 0.76 percent in December and is up 1.01 percent during the past quarter, best among states. Houston and Dallas have the best three-month employment growth rates among metros. Construction leads the industry jobs index for the eighth consecutive month. Financial activities has the best weekly hours worked growth among sectors.The complete results for December, including interactive charts detailing all data at a national, regional, state, metro, and industry level, are available at www.paychex.com/watch. Highlights are available below. \nNote: Data presented for the month of December was collected between November 13, 2020 and December 17, 2020.\nNational Jobs Index\nAt 94.06, the Small Business Jobs Index slowed 0.24 percent in December and 4.18 percent f...