Hourly Earnings Growth Falls Below Three Percent as Job Growth Remains Steady for U.S. Small Businesses
The Paychex Small Business Employment Watch for August 2024 reveals a cooling labor market for U.S. small businesses with fewer than 50 employees. Hourly earnings growth dropped to 2.89%, falling below 3% for the first time since January 2021. The national small business jobs index averaged 100.37 through eight months of 2024, indicating modest employment growth. Despite a slight increase to 99.89 in August, the index remained below 100, suggesting nominal year-over-year job losses.
Regional highlights include the Midwest leading in small business employment growth at 100.50, with Indiana topping both state and national rankings at 101.87. The West led in hourly earnings growth at 3.55%, while the Construction sector outperformed in hourly earnings (3.66%), weekly earnings (3.81%), and weekly hours worked (0.27%).
Il Paychex Small Business Employment Watch di agosto 2024 rivela un raffreddamento del mercato del lavoro per le piccole imprese statunitensi con meno di 50 dipendenti. La crescita del salario orario è scesa a 2,89%, scendendo sotto il 3% per la prima volta dal gennaio 2021. L'indice dei posti di lavoro per le piccole imprese a livello nazionale ha avuto una media di 100,37 nei primi otto mesi del 2024, indicando una modesta crescita dell'occupazione. Nonostante un leggero aumento a 99,89 ad agosto, l'indice è rimasto sotto 100, suggerendo perdite nominali di posti di lavoro rispetto all'anno precedente.
I punti salienti regionali includono il Midwest che guida la crescita dell'occupazione nelle piccole imprese con un valore di 100,50, e l'Indiana che si posiziona ai vertici sia a livello statale che nazionale con un punteggio di 101,87. Il West ha guidato la crescita del salario orario con un aumento del 3,55%, mentre il settore edilizia ha performato meglio in termini di salario orario (3,66%), salario settimanale (3,81%) e ore lavorate settimanalmente (0,27%).
El Paychex Small Business Employment Watch de agosto de 2024 revela un enfriamiento del mercado laboral para las pequeñas empresas de EE. UU. con menos de 50 empleados. El crecimiento de los salarios por hora cayó a 2.89%, por debajo del 3% por primera vez desde enero de 2021. El índice de empleos de pequeñas empresas a nivel nacional promedió 100.37 durante los ocho meses de 2024, indicando un modesto crecimiento del empleo. A pesar de un leve aumento a 99.89 en agosto, el índice se mantuvo por debajo de 100, sugiriendo pérdidas nominales de empleos en comparación con el año anterior.
Los aspectos destacados regionales incluyen el Midwest liderando el crecimiento del empleo en pequeñas empresas con 100.50, con Indiana a la cabeza tanto en el ranking estatal como nacional, alcanzando un 101.87. El Oeste lideró en el crecimiento de salarios por hora con un 3.55%, mientras que el sector de construcción superó en salarios por hora (3.66%), salarios semanales (3.81%) y horas trabajadas semanalmente (0.27%).
2024년 8월 Paychex 소규모 비즈니스 고용 감시 보고서는 50명 미만의 직원을 둔 미국의 소규모 비즈니스에 대한 노동 시장의 냉각을 보여줍니다. 시간당 수익 증가율는 2.89%로 떨어졌으며, 이는 2021년 1월 이후 처음으로 3% 아래로 하락했습니다. 전국 소규모 비즈니스의 직업 지수는 2024년 8개월 동안 평균 100.37을 기록하여 보통의 고용 성장을 나타냅니다. 8월에 99.89로 약간 증가했음에도 불구하고 지수는 100 미만에 머물렀으며, 이는 전년 대비 명목상의 일자리 손실을 시사합니다.
지역 하이라이트에는 미드웨스트 지역이 100.50으로 소규모 비즈니스 고용 성장을 이끌었고, 인디애나주가 주 및 국가 순위에서 101.87로 1위를 차지했습니다. 서부 지역은 3.55%로 시간당 수익 증가율이 가장 높았으며, 건설 부문은 시간당 수익(3.66%), 주급(3.81%), 주별 근무 시간(0.27%)에서 우수한 성과를 보였습니다.
Le Paychex Small Business Employment Watch pour août 2024 révèle un refroidissement du marché du travail pour les petites entreprises américaines comptant moins de 50 employés. La croissance des salaires horaires est tombée à 2,89%, passant sous la barre des 3% pour la première fois depuis janvier 2021. L'indice des emplois pour les petites entreprises à l'échelle nationale a atteint une moyenne de 100,37 au cours des huit premiers mois de 2024, indiquant une croissance modeste de l'emploi. Malgré une légère augmentation à 99,89 en août, l'indice est resté en dessous de 100, suggérant des pertes d'emplois nominales par rapport à l'année précédente.
Les faits marquants régionaux incluent le Midwest, qui est en tête de la croissance de l'emploi des petites entreprises avec un indice de 100,50, tandis que l'Indiana occupe la première place tant au niveau des États que du classement national avec 101,87. L'
Der Paychex Small Business Employment Watch für August 2024 zeigt eine Abkühlung des Arbeitsmarktes für kleine Unternehmen in den USA mit weniger als 50 Mitarbeitern. Das Wachstum der Stundenlöhne ist auf 2,89% gesunken und liegt damit zum ersten Mal seit Januar 2021 unter 3%. Der nationale Jobs-Index für kleine Unternehmen lag in den ersten acht Monaten von 2024 im Durchschnitt bei 100,37, was auf eine moderate Beschäftigungszunahme hinweist. Trotz eines leichten Anstiegs auf 99,89 im August blieb der Index unter 100, was auf nominale Arbeitsverluste im Vergleich zum Vorjahr hindeutet.
Regionale Höhepunkte sind unter anderem, dass der Midwest mit 100,50 bei der Beschäftigungssteigerung in kleinen Unternehmen führt, während Indiana sowohl in den staatlichen als auch in den nationalen Rankings mit 101,87 an der Spitze steht. Der Westen führte beim Wachstum der Stundenlöhne mit 3,55%, während der Bausektor bei den Stundenlöhnen (3,66%), den Wochenlöhnen (3,81%) und den wöchentlichen Arbeitsstunden (0,27%) besser abschnitt.
- National small business jobs index averaged 100.37 through eight months of 2024, indicating modest employment growth
- Midwest region led in small business employment growth at 100.50
- Indiana topped state rankings for small business employment growth at 101.87
- Construction sector led in hourly earnings growth (3.66%), weekly earnings (3.81%), and weekly hours worked (0.27%)
- Hourly earnings growth dropped to 2.89%, falling below 3% for the first time since January 2021
- One-month annualized hourly earnings growth dropped to 1.91%
- National jobs index remained slightly below 100, indicating nominal year-over-year job losses
- Weekly hours worked growth remained negative year-over-year for the 17th consecutive month
Insights
The latest Paychex Small Business Employment Watch reveals a significant slowdown in wage growth, with hourly earnings growth falling below
From an investor's perspective, this data points to a moderating economy, which could impact various sectors differently. Companies reliant on consumer spending might face headwinds due to slower wage growth, while those sensitive to interest rates could benefit from potential rate cuts. The regional and industry variations, such as the Midwest's leadership in job growth and Construction's wage growth dominance, offer opportunities for targeted investment strategies.
The Paychex report unveils a nuanced picture of the small business labor market. The slight increase in the national jobs index to 99.89, despite remaining below 100, suggests a delicate balance between job creation and loss. The persistent negative growth in weekly hours worked is concerning, potentially indicating underemployment or reduced demand. However, the positive one-month annualized growth in hours worked offers a glimmer of hope.
The regional disparities are noteworthy, with the Midwest and Indiana showing resilience in job growth. This could reflect differences in industrial composition or local economic policies. The Education and Health Services sector's leadership in job growth aligns with broader trends of increasing demand in these essential services. For job seekers and businesses, these trends suggest opportunities in specific regions and sectors, while also highlighting the need for adaptability in a changing labor landscape.
The Paychex data provides important insights into the effectiveness of current economic policies. The deceleration in wage growth to
This scenario presents a delicate balancing act for policymakers. While lower wage growth may help combat inflation, it could also lead to reduced consumer spending and economic growth. The regional and sectoral variations highlight the need for targeted policies rather than one-size-fits-all approaches. As the Fed considers rate cuts, they must weigh the risk of reigniting inflation against the need to support economic growth. For investors, this complex economic landscape underscores the importance of diversification and staying attuned to policy shifts that could significantly impact market dynamics.
According to the August Paychex Small Business Employment Watch, national hourly earnings growth is below three percent for the first time since January 2021. (Graphic: Business Wire)
“Our monthly jobs and wage reporting is based on actual payroll data and provides a near real-time pulse on the status of the small business labor market, which can be a leading indicator of the state of the overall
“After holding steady for several months, hourly earnings growth continued to decelerate in August,” Gibson added. “Falling below three percent for the first time in three years is another notable signal that the labor market is moving closer to its pre-pandemic level.”
Jobs Index and Wage Data Highlights
- At 99.89 in August, the national jobs index increased 0.02 percentage points from July but remained slightly below 100, indicating nominal year-over-year job losses.
-
National weekly hours worked growth (-
0.08% ) remained negative year-over-year for the 17th consecutive month, though one-month annualized growth was positive for the first time since January. -
The Midwest (100.50) remained the top region for small business employment growth for the third consecutive month. Leading the region and nation,
Indiana (101.87) was the top state for small business employment growth again in August and is the only state with a positive 12-month change rate (0.26 percentage points). - Education and Health Services (101.87) continued as the top industry sector for national job growth for the third consecutive month.
-
Ranked first among regions for the 15th-straight month, the West (
3.55% ) was the only region to report hourly earnings growth above three percent in August. -
For the 10th consecutive month, Construction led growth among industries in hourly earnings (
3.66% ), weekly earnings (3.81% ), and weekly hours worked (0.27% ).
The complete Small Business Employment Watch results for August 2024, including interactive charts detailing the data at a national, regional, state, metro, and industry sector level are available at www.paychex.com/watch. Learn more and sign up to receive monthly Employment Watch alerts.
About the Paychex Small Business Employment Watch
The Paychex Small Business Employment Watch is released each month by Paychex, Inc. Focused exclusively on businesses with fewer than 50 workers, the monthly report offers analysis of national employment and wage trends and examines regional, state, metro, and industry sector activity. Drawing from the payroll data of approximately 350,000 Paychex clients, this powerful industry benchmark delivers real-time insights into the small business trends driving the
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves over 745,000 customers in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903840602/en/
Media
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705
tvolkmann@paychex.com
@Paychex
Emily Walsh
Highwire Public Relations
Account Executive
(914) 815-8846
paychex@highwirepr.com
Source: Paychex, Inc.
FAQ
What was the hourly earnings growth rate for small businesses in August 2024 according to Paychex (PAYX)?
How did the national small business jobs index perform in August 2024 as reported by Paychex (PAYX)?
Which region led in small business employment growth in August 2024 according to Paychex (PAYX) data?
What industry sector showed the strongest performance in hourly earnings growth in August 2024 based on Paychex (PAYX) data?
