Press release
Small Business Jobs Index Dips in June, Rate of Wage Growth Continues to Moderate
Leisure and hospitality sector continues to struggle to hire back to pre-pandemic levels ROCHESTER, N.Y.--(BUSINESS WIRE)-- The rate of small business hiring
About this update from Paychex, Inc.
[{"type":"text","content":"\nLeisure and hospitality sector continues to struggle to hire back to pre-pandemic levels\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nThe rate of small business hiring slowed modestly in June as hourly earnings growth across the U.S. decelerated to 4.02% from 4.24% in May, according to the Paychex | IHS Markit Small Business Employment Watch. The national Small Business Jobs Index — which measures the rate of small business job growth in the U.S. — registered 99.21 in June, virtually unchanged so far in 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230705068435/en/At 99.21, the national jobs index decreased 0.24% in June, while hourly earnings growth moderated further to 4.02%. (Graphic: Business Wire)\n“Hourly earnings gains slowed to 4.02%, in line with a gradually slowing rate of inflation,” said James Diffley, chief regional economist, S&P Global Market Intelligence.\n\n\n“Our June data suggests small business employment trends are following greater economic patterns, with slowing hourly wage gains aligning with continued declining inflation – a positive sign for businesses,” said John Gibson, Paychex president and CEO. “A moderation in job growth signals that the competitive hiring environment continues. This is especially true in leisure and hospitality, as these employers appear to once again be struggling to find people to fill open positions. Now more than ever, it is important for businesses to improve their operational efficiency and offer competitive employee benefits.”\n\n\nIn further detail, the June report shows:\n\n\n\nAt 99.21, the national jobs index decreased 0.24% in June. Overall, employment growth slowed 0.51% during the second quarter of 2023 after increasing in the first three months of 2023. The index remains a full point higher than the year leading up to the pandemic (March 2019-February 2020).\n\n\n\nHourly earnings growth moderated further to 4.02%, while one-month annualized hourly earnings growth is now below three percent (2.99%) for the first time since 2020.\n\n\n\nThe South continues to lead small business employment growth among regions for the 15th consecutive month at 100.12, down 0.35%. The South also leads hourly earnings growth by a small margin.\n\n\n\nTexas (4.91%) continues to report the strongest hourly earnings gr...