Press release
Job Market Remains Stable, Wage Growth Drops Below Four Percent
Small Business Jobs Index remains relatively flat from January 2023 ROCHESTER, N.Y.--(BUSINESS WIRE)-- According to the Paychex | IHS Markit Small Business
About this update from Paychex, Inc.
[{"type":"text","content":"\nSmall Business Jobs Index remains relatively flat from January 2023\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nAccording to the Paychex | IHS Markit Small Business Employment Watch, hourly earnings growth (3.95%) has dipped below four percent for the first time since 2021, and one-month annualized growth in hourly earnings remains below four percent for the fourth consecutive month. Small business job growth is essentially unchanged in July from June. Currently at 99.14, the national Small Business Jobs Index — which measures the rate of small business job growth in the U.S. — has remained between 99 and 100 for the past year, representing moderate job growth for the year.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230801701980/en/The July Paychex | IHS Markit Small Business Jobs Index shows declines in wage inflation and a steady job market. (Graphic: Business Wire)\n“Job growth remains relatively flat while wage growth is moderating after its inflation-fueled acceleration last year,” said James Diffley, chief regional economist, S&P Global Market Intelligence. “Both of these factors signal a stable economy not heading toward a significant downturn.”\n\n\n“Our latest jobs data shows a resilient labor market for small businesses,” said John Gibson, Paychex president and CEO. “Wage inflation continues to decline, while the labor market remains tight for small businesses and their employees.”\n\n\nIn further detail, the July report shows:\n\n\n\nHourly earnings growth moderated, dropping 0.07% (to 3.95%) and falling below four percent for the first time in more than two years.\n\n\n\nWeekly earnings growth slowed to 3.71% in July, its fifth consecutive month in decline. One-month annualized growth has been below three percent for the past four months\n\n\n\nThe South continues to lead small business employment growth among regions for the 16th consecutive month, but the West was the only region to see small business jobs growth increase in July.\n\n\n\nJob growth in leisure and hospitality slowed by 0.39% to 99.24, yet its hourly earnings growth (5.15%) ranks first among sectors.\n\n\n\nTexas leads states in both small business job growth and hourly earnings growth with a July jobs index of 100.87 and hourly earnings growth standing at 4.80%.\n\n\n\nPaychex solu...