Gains in Small Business Job Growth Continue in September
According to the Paychex | IHS Markit Small Business Employment Watch report for September, the Small Business Jobs Index reached 99.95, marking a 5.84% increase over the past year. Although job growth improved in summer, it slowed to 0.15% in September. Hourly earnings grew by 3.68%, the fourth consecutive increase, reaching $29.68. The leisure and hospitality sector leads in wage growth with an 8.14% increase. Texas has become the top state in job growth with an index of 102.90, surpassing Arizona.
- National Jobs Index increased 5.84% in the past year.
- Hourly earnings rose by 3.68% to $29.68 in September.
- Leisure and hospitality sector saw a wage increase of 8.14%.
- Texas now leads in small business job growth with an index of 102.90.
- Job growth has slowed significantly in August (0.45%) and September (0.15%).
- National Jobs Index remains below 2012-2016 peaks.
ROCHESTER, N.Y., Oct. 5, 2021 /PRNewswire/ -- National job growth continued to tick upward in September, according to aggregated payroll data of approximately 350,000 clients provided by Paychex. The data released in the latest report of the Paychex | IHS Markit Small Business Employment Watch shows the Small Business Jobs Index reached 99.95. The pace of small business employment growth improved throughout the summer, though monthly gains slowed considerably in August (0.45 percent) and in September (0.15 percent). Hourly earnings growth increased to 3.68 percent for the month, its fourth consecutive increase.
"While the growth rate of the national jobs index has slowed over the past two months, the index is now close to 100, its highest level since mid-2017," said James Diffley, chief regional economist at IHS Markit.
"With businesses continuing to recover from the impacts of the pandemic and the competitive employment landscape, we're beginning to see wage pressures in certain industries," said Martin Mucci, Paychex president and CEO. "The leisure and hospitality sector, with its many job openings across the country, is seeing the highest hourly earnings growth across all industries in September."
In further detail, the September report showed:
- At 99.95, the national index has increased 5.84 percent during the past 12 months as small businesses continue to recover from the coronavirus pandemic.
- At
$29.68 in September, hourly earnings have improved by$1.05 from a year ago. This is the first time that year-over-year gains reached one dollar since reporting began ten years ago. - Five metros, Los Angeles, Riverside, Denver, Atlanta, and Tampa recorded wage gains above four percent in September.
- Hourly earnings growth in Leisure and hospitality has increased to 8.14 percent, highest among industry sectors.
- Texas overtook Arizona for the lead among states in job growth, at 102.90.
- At 104.06, Dallas leads metro small business jobs growth, jumping 1.18 percent in September and 2.85 percent during the past quarter.
- The construction sector now has the second weakest jobs index (98.57) and the lowest 12-month growth rate (0.84 percent).
Paychex business solutions reach 1 in 12 American private-sector employees, making the Small Business Jobs Index report an industry benchmark. The national jobs index uses a 12-month same-store methodology to gauge small business employment trends on a national, regional, state, metro, and industry basis.
The complete results for September, including interactive charts detailing all data, are available at www.paychex.com/watch. Highlights are available below.
National Jobs Index
- The pace of small business employment growth improved each summer month, though gains have slowed considerably in August (0.45 percent) and September (0.15 percent).
- At 99.95, the national index has gained a record high 5.84 percent during the past 12 months as small businesses continue to recover from the coronavirus pandemic.
- While the index is recovering from the impacts of the pandemic, the national index remains a full point below its 2012-2016 peaks.
National Wage Report
- Hourly earnings growth increased to 3.68 percent in September, its fourth consecutive increase.
- At
$29.68 in September, hourly earnings have improved by$1.05 from a year ago. This is the first time that year-over-year gains reached one dollar since reporting began ten years ago. - Due to reduced weekly hours worked, weekly earnings growth (2.75 percent) is nearly one percent lower than hourly earnings growth (3.68 percent).
Regional Jobs Index
- At 100.53, the West surged 0.53 percent from the previous month, 2.32 percent during the past quarter, and 7.48 percent during the past year, all equating to the best change rates among regions.
- The South leads all regions in small business employment growth with an index of 100.77.
- Besides the West, all other regions showed little movement in September.
Regional Wage Report
- Hourly earnings growth in the West reached 4.03 percent in September, best among regions and the tenth consecutive increase.
- Weekly hours worked are down 1.28 percent from last year in the Northeast, which is approximately twice the drop in hours worked compared to the other three regions.
State Jobs Index
- Texas is now the top state for small business employment growth, overtaking Arizona.
- California, Texas, and New York led one-month gains among states with increases of at least 0.57 percent in September.
- Gaining 4.29 percent during the past quarter, Washington is now in the top 10 among states for the first time in two years with an index of 99.51.
Note: Analysis is provided for the 20 largest states based on U.S. population.
State Wage Report
- Led by North Carolina at 4.41 percent hourly earnings growth, four of the top five states for hourly earnings growth are in the South (Georgia, Florida, Tennessee).
- Texas is the only state with positive weekly hours worked growth (0.28 percent) in September.
- At 4.15 percent, Georgia leads states in weekly earnings growth, though September is the first month in 2021 where growth slowed.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Metropolitan Jobs Index
- At 104.06, Dallas leads metro small business jobs growth, jumping 1.18 percent in September and 2.85 percent during the past quarter.
- Dallas and San Diego both had employment gains of more than one percent in September.
- Small business employment growth in Seattle (99.49) has increased 10.02 percent during the past year, best among metros.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Metropolitan Wage Report
- Five metros, Los Angeles, Riverside, Denver, Atlanta, and Tampa recorded wage gains over four percent.
- Denver is among the top three metros in both earnings and hours worked growth.
- Baltimore ranks last among metros in both hourly and weekly earnings growth, both under two percent.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Industry Jobs Index
- At 102.23 and up 3.86 percent during the past quarter, the leisure and hospitality jobs index ranks first among sectors for the first time since 2012.
- Construction has the second weakest jobs index (98.57) and the lowest 12-month growth rate (0.84 percent) among sectors.
- Financial activities is the only sector with a negative three-month growth rate, -0.06 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.
Industry Wage Report
- The Leisure and hospitality sector continues to outperform all other sectors in earnings growth, at 8.14 percent.
- All sectors have negative weekly hours worked growth.
- Education and health services has hourly earnings growth (2.64 percent) near the bottom of sectors.
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 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/gains-in-small-business-job-growth-continue-in-september-301392780.html
SOURCE Paychex, Inc.
FAQ
What was the Small Business Jobs Index for September 2021?
How much did hourly earnings grow in September 2021?
Which sector led in wage growth in September 2021?
Which state saw the highest job growth in September 2021?
How has job growth trended in August and September 2021?
