Press release
Wage Growth for Workers of U.S. Small Businesses Continues Downward Trend; Job Growth Remains Stable
ROCHESTER, N.Y.--(BUSINESS WIRE)-- The rate of hourly earnings growth for workers at U.S. small businesses has slowed 17 of the past 18 months to 3.48% in
About this update from Paychex, Inc.
[{"type":"text","content":" ROCHESTER, N.Y.--(BUSINESS WIRE)--\nThe rate of hourly earnings growth for workers at U.S. small businesses has slowed 17 of the past 18 months to 3.48% in November, falling below 3.50% for the first time since July 2021, according to the Paychex Small Business Employment Watch. Hiring at small businesses across the U.S. remains stable but continues to slow from the rate of growth seen at the start of 2023.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231205765145/en/Wage growth for employees of U.S. small businesses has slowed for 17 of the last 18 months. The rate of job growth in this segment also declined 0.18% in November to 98.59. (Graphic: Business Wire)\nWhat November’s Report Means\n\n\n“As we approach the end of 2023, wage growth continues to decline indicating that the actions taken by the Federal Reserve are having the desired effect,” said John Gibson, Paychex president and CEO. “Small business employers continue to add jobs at a more moderate pace than at the start of 2023 but still at a higher rate than pre-pandemic levels. Small businesses continue to show their resilience in the face of difficult capital markets and continued challenges in finding quality highly skilled labor.”\n\n\n“November’s Small Business Employment Watch data highlights differing market conditions both geographically and by industry sector,” added Frank Fiorille, Paychex vice president of risk, compliance, and data analytics. “For instance, the Education and Health Services, as well as the Construction sector, have both experienced solid job growth throughout 2023. Leisure and Hospitality job growth continues to decline following a period of extensive recovery for the sector since 2020.”\n\n\nKey Insights\n\n\n\nSlowing for 17 of the past 18 months, hourly earnings growth fell to 3.48% in November.\n\n\n\nThe rate of small business job growth declined 0.18% to 98.59 in November.\n\n\n\nHourly earnings growth in the Leisure and Hospitality sector has steadily slowed during the past two years, declining from 10.95% to 3.79% between January 2022 and November 2023.\n\n\n\nThe South leads the pace of small business job growth among regions for the 20th consecutive month, with an index of 99.36, and was the only region to improve in November (0.10%).\n\n\n\nThe Northeast (98.02) ...