ROCHESTER, N.Y., March 1, 2022 /PRNewswire/ -- National small
business job growth remained at consistent levels in February and
hourly earnings growth continued to increase for workers, according
to the latest Paychex | IHS Markit Small Business Employment Watch.
The national jobs index was unchanged for the month at 101.33,
matching the record level set in January and increasing 7.83
percent over the past year. Hourly earnings growth reached a new
record high, growing to 4.82 percent year-over-year.
"Small business employment gains maintained their recovery pace
in February with broad-based gains now somewhat less reliant on
leisure and hospitality jobs," said James
Diffley, chief regional economist at IHS Markit.
"U.S. small business job growth and significant hourly earnings
increases continue versus last year. The West leads regions
for the highest job index result and the South has the highest
hourly earnings growth this month, topping five percent," said
Martin Mucci, Paychex CEO.
In further detail, the February report showed:
- At 101.33, the Small Business Jobs Index has improved 7.83
percent from last year (93.97).
- Following eight consecutive one-month increases, the Small
Business Jobs Index was flat from the previous month.
- Hourly earnings growth continued its nine-month climb from 2.75
percent in May 2021 to 4.82 percent
in February 2022.
- One-month annualized hourly earnings growth (6.83 percent) also
reached a new record level in February.
- The South leads all regions in hourly earnings growth.
- Leisure and hospitality leads all sectors with 10.40 percent
hourly earnings growth.
- North Carolina surpassed
Texas as the top state for small
business job growth.
- Dallas extended its position
for the sixth month as the top metro for small business
hiring.
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 February, including interactive charts
detailing all data, are available at www.paychex.com/watch.
Highlights are available below.
National Jobs Index
- At 101.33, the small business jobs index has improved 7.83
percent from last year (93.97).
- Following eight consecutive increases, the national index was
unchanged and remained at its record level set last month
(101.33).
- Though the index continued at its record pace of small business
employment growth, the one-month change reported its weakest rate
since May 2021.
National Wage Report
- Hourly earnings growth continued its nine-month climb from 2.75
percent in May 2021 to 4.82 percent
in February 2022. In addition to the
annual growth rate, one-month annualized growth (6.83 percent) also
reached a new record level in February.
- Down 0.80 percent year-over-year, weekly hours worked have
slowed further in recent months as the one-month annualized growth
rate fell to -1.78 percent.
Regional Jobs Index
- The West continued to rank first among regions, improving to
101.77, the region's 12th consecutive increase.
- Falling 0.34 percent to 100.33 in February, the Midwest has
ranked last for the past eight months and is now more than full
point lower than all other regions.
Regional Wage Report
- The South leads all regions at 5.03 percent hourly earnings
growth, though all regions are above four percent.
- Weekly hours worked growth slowed considerably for all regions
in February. The Midwest slowed the most from last year, down 1.41
percent.
- With the decrease in weekly hours worked, the West is the only
region with weekly earnings growth above four percent.
State Jobs Index
- North Carolina (103.13)
surpassed Texas and Arizona for top jobs index among states.
North Carolina is the only state
above 103 and has increased its rate of small business employment
growth 9.43 percent during the past year.
- Tennessee had the largest
one-month change among states, 0.81 percent, but remains the
lowest-ranked state; Ohio and
Tennessee are the only two states
with index levels below 100.
Note: Analysis is provided for the 20 largest states based on
U.S. population.
State Wage Report
- Best among states, Ohio and
North Carolina have hourly
earnings growth above six percent.
- With hourly earnings gains of less than four percent,
Missouri, Pennsylvania, and Massachusetts trail among states.
- Albeit a very small increase, Texas (0.02 percent) is the only state 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
- At 104.68, Dallas has been
above 104 and ranked first among metros for the past six months as
the pace of small business job growth has been consistently
strong.
- Denver ranks 19th
among metros in February 2022 with an
index of 99.26. To offer perspective of how the small business job
market has progressed, Denver
ranked 3rd among metros in February 2021 with an index of 96.09.
- While gains in employment growth have been broad-based
throughout the pandemic recovery, diverging trends among metros
have started to emerge in the February results.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Metropolitan Wage Report
- Led by Denver (5.80 percent),
seven metros have hourly earnings growth above five percent.
- Both well above five percent, Florida metros Tampa and Miami trail only Denver in hourly earnings growth, due in part
to the significant increase ($1.35/hour) in Florida's minimum wage that occurred at the
end of September 2021.
- Four metros are below four percent hourly earnings growth,
Houston, Philadelphia, Washington, and Boston.
- Houston is the only metro with
positive weekly hours worked growth year-over-year. All metros,
however, have negative one-month annualized growth in
February.
Note: Analysis is provided for the 20 largest metro areas
based on U.S. population.
Industry Jobs Index
- Leisure and hospitality (106.60) remains well ahead of all
other sectors, but reported its first decrease (-0.61 percent)
since last February.
- Trade, transportation, and utilities reached an index level of
100 for the first time in nearly five years.
- At 98.41, financial activities remains the weakest among
sectors, but recorded its first increase (0.26 percent) in since
August 2021.
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 10.40 percent
hourly earnings growth, while trade, transportation, and utilities
ranks second at 6.19 percent.
- Education and health services trails all sectors with 3.66
percent hourly earnings growth.
- Construction leads sectors in 12-month weekly hours worked
growth (-0.04 percent) and is the only sector with positive
one-month annualized growth (0.29 percent).
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.