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Paychex-IHS Small Business Jobs Index moderated to 94.39 in August
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The latest Paychex | IHS Markit Small Business Employment Watch shows that despite hiring remaining flat since its drop-off in April, employees of small business are seeing the benefits of solid wage growth. Hourly earnings growth was steady at 3.28 percent in August and weekly earnings continue to improve as the number of hours worked increases. The national jobs index stood at 94.39, moderating 0.21 percent from the previous month.
“The national index stalled this summer, with the month of August again, as it has since April, closing below 95,” said James Diffley, chief regional economist at IHS Markit.
“As the jobs index has remained near April levels, PPP loans appear to have provided stability and prevented further declines,” said Martin Mucci, Paychex president and CEO. “While employment levels remain challenging, wages continue to show positive momentum.”
The report also includes regional, state, metro, and industry level analysis, showing:
- Amid a regional COVID-19 surge, the West and South reported the largest declines in employment growth, -0.38 percent and -0.31 percent, respectively.
- Weekly earnings and hours worked growth is strongest in the Northeast.
- New York posts the best weekly hours worked growth among states.
- Despite a significant downturn in August (-0.69 percent), Florida continues to lead states in employment growth with an index of 96.50.
- At 4.23 percent, hourly earnings growth in the Construction sector has improved every month in 2020.
Growth in Hours Worked Contributing to Wage Gains for Employees of Small Businesses
Weekly earnings and hours worked growth strongest in the Northeast as COVID-19 conditions improve in states such as New York, New Jersey, and Pennsylvania
Posted: September 1, 2020 Tuesday 08:30 AM