ROCHESTER, N.Y., Feb. 1, 2022 /PRNewswire/ -- National small
business job growth continued to increase in January as did
earnings for workers, according to the Paychex | IHS Markit Small
Business Employment Watch. The January data shows the Small
Business Jobs Index, which measures the year-over-year rate of
employment growth, gained 0.39 percent in January. At 101.33, the
national index has increased 7.80 percent over the past year,
surpassing its 2014 peak. At 4.43 percent year-over-year, hourly
earnings growth maintained its record high set last month
(December 2021).
"The pace of small business job growth continued to grow in
January, reaching a new record high powered by the return to work
in leisure and hospitality," said James
Diffley, chief regional economist at IHS Markit.
"Small businesses are continuing to recover from the job losses
experienced at the start of the COVID-19 pandemic. While employment
has not returned to pre-pandemic levels, the sustained growth in
jobs is certainly positive," said Martin
Mucci, Paychex CEO. "Workers are also continuing to command
higher pay. Hourly earnings growth in January matched the peak
level set just last month."
In further detail, the January report showed:
- The national index gained 0.39 percent in January, in line with
its average monthly gain in the last six months of 2021.
- At 4.43 percent year-over-year, hourly earnings growth
continued to show strength, remaining at its peak level hit in
December 2021.
- Hiring in leisure and hospitality (107.25) accelerated further
ahead of other sectors, gaining 1.49 percent in January and 23.94
percent since last January.
- Likely due to the COVID-19 omicron variant, one-month
annualized weekly hours worked growth dropped nearly eight percent
in leisure and hospitality in January.
- Job gains were broad-based as all regions of the U.S. advanced
in January, though the West leads all regions at 101.65, improving
for the eleventh consecutive month.
- Texas remained the top state
for small business hiring and Dallas the top metro.
Paychex business solutions reach 1 in 12 American private-sector
employees, making the Small Business Employment Watch an industry
benchmark. Drawing from the payroll data of approximately 350,000
Paychex clients with fewer than 50 employees, the monthly report
offers analysis of national employment and wage trends, as well as
examines regional, state, metro, and industry sector activity.
The complete results for November, including interactive charts
detailing all data, are available at www.paychex.com/watch.
Highlights are available below.
National Jobs Index
- At 101.33, the national index surpassed its 2014 peak.
- The national index gained 0.39 percent in January, in line with
its average monthly gain in the last six months of 2021.
- The small business jobs index continues to improve, though
total employment is still well below pre-pandemic levels.
National Wage Report
- Up 4.43 percent year-over-year, hourly earnings growth remained
at its peak level in January.
- Weekly earnings moderated slightly to 3.87 percent in January
from 3.94 percent to end 2021.
- Annual weekly hours worked growth was essentially flat from
December to January (-0.29 percent), though one-month annualized
growth has been positive for the past four months.
Regional Jobs Index
- The gains were broad-based as all regions advanced in
January.
- The West leads all regions at 101.65, improving for the
eleventh consecutive month.
- At 101.43, the Northeast leads one-month, three-month, and
12-month changes rates among regions.
Regional Wage Report
- At 4.55 percent, hourly earnings growth remains strongest in
the West region for the seventh consecutive month.
- The Northeast is the only region with hourly earnings growth
below four percent. While all other regions have one-month
annualized growth above four percent, growth in the Northeast is
just 2.44 percent.
- All regions have fewer weekly hours worked year-over-year.
State Jobs Index
- Texas, Arizona, North
Carolina, Georgia, and
Washington lead, all with index
levels greater than 102.
- At 101.51 and up 10.51 percent from last year, New York improved its ranking among states for
the fifth consecutive month.
- Tennessee and Missouri had the strongest one-month gains in
January (1.15 percent), although both states have an index below
100.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
State Wage Report
- Four states registered hourly earnings growth above five
percent, North Carolina,
Tennessee, Ohio, Florida, and Georgia.
- Missouri (2.92 percent) is the
only state with hourly earnings growth below three percent.
- Texas, Pennsylvania, and Arizona are the only three states with
positive weekly hours worked growth year-over-year.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
Metropolitan Jobs Index
- Dallas (104.30) and
Minneapolis (103.56) lead all
metros by a wide margin and were relatively unchanged in
January.
- Denver gained 2.64 percent in
January, increasing its index to 99.81. However, Denver and Baltimore remain the only metros with index
levels below 100.
- Following four consecutive slowdowns to end 2021, Tampa gained 1.09 percent in January, its
second best one-month gain since 2017.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Metropolitan Wage Report
- Denver, Tampa, Miami,
and Phoenix lead metros in hourly
earnings growth, all above five percent. All metros have hourly
earnings growth at or above three percent in January.
- Houston ranks last among
metros in hourly earnings growth (3.00 percent), but first among
metros in weekly hours worked growth (0.71 percent).
- San Francisco, Detroit, and Seattle all have weekly earnings growth below
three percent, largely due to a decrease in weekly hours
worked.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Industry Jobs Index
- Leisure and hospitality (107.25) accelerated further ahead of
other sectors, gaining 1.49 percent in January and 23.94 percent
since last January.
- The national index reported a new record high in January
(101.33), though only leisure and hospitality, other services, and
manufacturing have index levels above 100.
- Construction remains relatively flat and among the lowest
sectors for jobs growth, trending below 99 for the ninth
consecutive month.
Note: Analysis is provided for seven major industry sectors.
Definitions of each industry sector can be found here. The other
services (except public administration) industry category includes
religious, civic, and social organizations, as well as personal
services, including automotive and household repair, salons,
drycleaners, and other
businesses.
Industry Wage Report
- Leisure and hospitality leads all sectors with hourly earnings
growth of 10.95 percent, nearly double the next highest ranked
sector, trade, transportation, and utilities (5.81 percent).
- Likely due to the COVID-19 omicron variant, one-month
annualized weekly hours worked growth dropped nearly eight percent
in leisure and hospitality in January. For reference, education and
health services (-0.31 percent) is the only other sector with
negative one-month annualized weekly hours worked growth in
January.
- At 3.10 percent, education and health services rank last among
sectors in hourly earnings growth.
Note: Analysis is provided for seven major industry sectors.
Definitions of each industry sector can be found here. The other
services (except public administration) industry category includes
religious, civic, and social organizations, as well as personal
services, including automotive and household repair, salons,
drycleaners, and other businesses.
For more information about the Paychex | IHS Markit Small
Business Employment Watch, visit www.paychex.com/watch and sign up
to receive monthly Employment Watch alerts.
*Information regarding the professions included in the
industry data can be found at the Bureau of Labor Statistics
website.
About the Paychex | IHS Markit Small Business Employment
Watch
The Paychex | IHS Markit Small Business Employment
Watch is released each month by Paychex, Inc., a leading provider
of integrated human capital management software solutions for human
resources, payroll, benefits, and insurance services, and IHS
Markit, a world leader in critical information, analytics, and
expertise. Focused exclusively on small business with fewer than 50
employees, the monthly report offers analysis of national
employment and wage trends, as well as examines regional, state,
metro, and industry sector activity. Drawing from the payroll data
of approximately 350,000 Paychex clients, this powerful tool
delivers real-time insights into the small business trends driving
the U.S. economy.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is a leading provider of integrated
human capital management software solutions for human resources,
payroll, benefits, and insurance services. By combining its
innovative software-as-a-service technology and mobility platform
with dedicated, personal service, Paychex empowers small- and
medium-sized business owners to focus on the growth and management
of their business. Backed by 50 years of industry expertise,
Paychex served more than 710,000 payroll clients as of May 31, 2021 across more than 100 locations in
the U.S. and Europe, and pays one
out of every 12 American private sector employees. Learn more about
Paychex by visiting paychex.com and stay connected on Twitter and
LinkedIn.
About IHS Markit (www.ihsmarkit.com) IHS Markit (NYSE:
INFO) is a world leader in critical information, analytics and
solutions for the major industries and markets that drive economies
worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing
deep insights that lead to well-informed, confident decisions. IHS
Markit has more than 50,000 business and government customers,
including 80 percent of the Fortune Global 500 and the world's
leading financial institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd.
and/or its affiliates. All other company and product names may be
trademarks of their respective owners © 2021 IHS Markit Ltd. All
rights reserved.
Media Contacts
Lisa
Fleming
Paychex, Inc.
+1 585-387-6402
lfleming@paychex.com
@Paychex
Kate Smith
IHS Markit
+1 781-301-9311
katherine.smith@ihsmarkit.com
Maggie Pryslak
Mower
+1 585-576-1083
mpryslak@mower.com
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SOURCE Paychex, Inc.