Wage Growth for U.S. Small Business Employees Remains Consistent in July, While Job Growth Continues to Moderate
This 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)
“Overall, small businesses are looking to hire but continue to face a tight labor market,” says
“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.”
Jobs Index and Wage Data Highlights:
- The national small business jobs index has averaged moderate employment gains (100.44) through seven months of 2024. The July reading stands at 99.87.
-
The majority of states are reporting an index level above 100 in July, but others are driving the national index to trend down.
-
The top four states for small business employment growth in July are all located in the Midwest region (
Indiana ,Michigan ,Missouri , andOhio ). -
Employment growth in
California dropped again in July to 98.74 indicating more significant year-over-year job losses.
-
The top four states for small business employment growth in July are all located in the Midwest region (
- At 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.
- The Construction sector has the largest one-month change among industries, down 0.67 percentage points to an index level of 99.77 in July, yet it continues to lead growth among sectors in hourly earnings (3.84%), weekly earnings (3.79%), and weekly hours worked (0.16%) for the ninth consecutive month.
- Education and Health Services (102.04) remains the top industry for small business employment growth in July yet reports the weakest hourly earnings growth at 2.67%.
The complete Small Business Employment Watch results for
About the Paychex Small Business Employment Watch
The Paychex Small Business Employment Watch is released each month by
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730370165/en/
Media
Manager, Public Relations
(585) 387-6705
tvolkman@paychex.com
@Paychex
Source: