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Paychex-IHS Markit Small Business Jobs Index was unchanged at 99.38 in December 2022
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The rate of hourly wage growth for U.S. small businesses continued to decline to 4.95 percent year-over-year in December, according to the latest Paychex | IHS Markit Small Business Employment Watch. Additionally, the Small Business Jobs Index which measures national employment growth for businesses with fewer than 50 workers remained unchanged from the previous month at 99.38.
“The Paychex | IHS Markit Small Business Jobs Index flattened in December, following nine-months of moderation. Additionally, small business hourly wage growth is starting to slow as the Fed takes measures to fight inflation,” said James Diffley, chief regional economist at IHS Markit.
"Despite various headwinds including inflation, difficulties in staffing, and changing regulations, U.S. small businesses have continually proven to be innovative and resilient through the challenges presented to them since the start of the pandemic,” said John Gibson, Paychex president and CEO. “As we enter 2023, small business owners and their employees are working more hours and finding ways to deal with inflation and higher credit costs.”
In further detail, the December report showed:
- At 99.38, the December 2022 national jobs index was unchanged from the previous month and remains a full point higher than the monthly average during the year leading up to the pandemic (March 2019 - February 2020).
- Hourly earnings growth year-over-year slowed to 4.95 percent in December, its weakest level since March 2022.
- One-month annualized hourly earnings growth was below four percent for the third time during the past four months.
- At 0.48 percent, one-month annualized weekly hours worked growth was positive for the fourth consecutive month.
- Leisure and hospitality continue to rank first among sectors in hourly earnings growth (6.75 percent) and last in weekly hours worked growth (-0.52 percent).
- The jobs index in the South improved for the third consecutive month, increasing to 100.72. The South has led the pace of small business growth among regions for the past nine months.
- Tennessee improved 3.20 percent in 2022, representing the highest growth rate among states. Although Tennessee ranked last among states one year ago in December 2021, the state now ranks seventh at 100.34.
- Houston (102.75) and Dallas (102.08) have the two strongest jobs indexes among metros for the seventh consecutive month.
- Paychex data also reveals that small business job growth remains steady.
Posted: January 3, 2023 Tuesday 08:30 AM