Press release
Wage Growth for U.S. Small Business Employees Remains Consistent in July, While Job Growth Continues to Moderate
ROCHESTER, N.Y.--(BUSINESS WIRE)-- According to the Paychex Small Business Employment Watch, hourly earnings growth for U.S. workers in businesses with fewer
About this update from Paychex, Inc.
[{"type":"text","content":" ROCHESTER, N.Y.--(BUSINESS WIRE)--\nAccording to the Paychex Small Business Employment Watch, hourly earnings growth for U.S. workers in businesses with fewer than 50 employees has held steady since May, reporting 3.16% growth in July, and weekly earnings growth remains below three percent for the sixth consecutive month. The Small Business Jobs Index has reported moderate gains on average through the first seven months of 2024.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240730370165/en/The Paychex Small Business Employment Watch shows 3.16% hourly earnings growth in July as job growth continues to moderate. (Graphic: Business Wire)\n“Overall, small businesses are looking to hire but continue to face a tight labor market,” says John Gibson, Paychex president and CEO. “Inflationary pressures and an evolving regulatory environment are making it difficult for these organizations to compete for scarce qualified employees. While job growth has moderated compared to last year, small businesses continue to be resilient and are finding ways to navigate the changing economic environment.”\n\n\n“Hiring dynamics by region, state, and industry are diverging, with the strongest job growth happening in the Midwest and a notable slowdown in Construction hiring across the country,” Gibson adds. “Small businesses are also continuing to carefully manage hours worked, which remains negative year-over-year for the 16th-straight month.”\n\n\nJobs Index and Wage Data Highlights:\n\n\n\nThe national small business jobs index has averaged moderate employment gains (100.44) through seven months of 2024. The July reading stands at 99.87.\n\n\n\nThe majority of states are reporting an index level above 100 in July, but others are driving the national index to trend down.\n\n\nThe top four states for small business employment growth in July are all located in the Midwest region (Indiana, Michigan, Missouri, and Ohio).\n\n\n\nEmployment growth in California dropped again in July to 98.74 indicating more significant year-over-year job losses.\n\n\n\n\n\n\nAt 2.87%, weekly earnings growth has trended just below three percent for the past six months. Weekly hours worked growth (-0.20%) remains negative year-over-year for the 16th consecutive month.\n\n\n\nThe Construction sector has the larg...