Job Growth in U.S. Small Businesses Continues the Pace Seen in the Back Half of 2024
Paychex Small Business Employment Watch reports that U.S. small businesses with fewer than 50 employees maintained job growth slightly below 100 in January 2025, continuing the trend from late 2024. Hourly earnings growth decelerated to 2.87%, marking the first sub-three percent start to a year since 2021.
Key findings include: weekly earnings growth dropped to 2.12% (lowest since January 2019), weekly hours worked decreased to -0.77% (lowest since October 2021). The Midwest region led employment growth with a 100.23 index, with Indiana topping state rankings at 101.67. Education and Health Services sector maintained leadership in job growth (101.72), while Manufacturing declined to 97.13, its lowest since March 2021.
Il Paychex Small Business Employment Watch riporta che le piccole imprese statunitensi con meno di 50 dipendenti hanno mantenuto una crescita occupazionale leggermente al di sotto di 100 a gennaio 2025, proseguendo la tendenza iniziata alla fine del 2024. La crescita dei guadagni orari ha decelerato al 2,87%, segnando il primo avvio dell'anno sotto il tre percento dal 2021.
I principali risultati includono: la crescita dei guadagni settimanali è scesa al 2,12% (il livello più basso da gennaio 2019), le ore lavorate settimanali sono diminuite del -0,77% (il livello più basso da ottobre 2021). La regione del Midwest ha guidato la crescita occupazionale con un indice di 100,23, con l'Indiana in cima alla classifica statale a 101,67. Il settore dell'Educazione e dei Servizi Sanitari ha mantenuto la leadership nella crescita occupazionale (101,72), mentre il Settore Manifatturiero è sceso a 97,13, il suo livello più basso dal marzo 2021.
El Paychex Small Business Employment Watch informa que las pequeñas empresas en EE. UU. con menos de 50 empleados mantuvieron un crecimiento laboral ligeramente por debajo de 100 en enero de 2025, continuando la tendencia de finales de 2024. El crecimiento de los ingresos por hora se desaceleró al 2.87%, marcando el primer inicio de año por debajo del tres por ciento desde 2021.
Los hallazgos clave incluyen: el crecimiento de los ingresos semanales cayó al 2.12% (el más bajo desde enero de 2019), las horas trabajadas semanales disminuyeron al -0.77% (el más bajo desde octubre de 2021). La región del Medio Oeste lideró el crecimiento del empleo con un índice de 100.23, siendo Indiana el estado con mejor clasificación a 101.67. El sector de Educación y Servicios de Salud mantuvo el liderazgo en crecimiento de empleo (101.72), mientras que el sector Manufacturero cayó a 97.13, su nivel más bajo desde marzo de 2021.
Paychex 소규모 기업 고용 동향에 따르면, 50명 미만의 직원을 가진 미국의 소규모 기업들은 2025년 1월에 100을 약간 밑도는 취업 증가세를 유지하며, 2024년 말의 경향을 계속하고 있습니다. 시간당 임금 성장률은 2.87%로 둔화되어, 2021년 이후 처음으로 3% 미만의 시작을 기록했습니다.
주요 결과는 다음과 같습니다: 주급 성장률은 2.12%로 하락하여(2019년 1월 이후 최저), 주당 근무 시간은 -0.77%로 감소하여(2021년 10월 이후 최저) 기록되었습니다. 미드웨스트 지역은 100.23 지수로 고용 증가에서 앞서며, 인디애나 주가 101.67로 주 랭킹 1위를 차지했습니다. 교육 및 건강 서비스 부문은 고용 성장(101.72)에서 선두를 유지한 반면, 제조업은 97.13으로 하락하여 2021년 3월 이후 최저입니다.
Le Paychex Small Business Employment Watch rapporte que les petites entreprises américaines comptant moins de 50 employés ont maintenu une croissance de l'emploi légèrement inférieure à 100 en janvier 2025, poursuivant la tendance amorcée fin 2024. La croissance des salaires horaires a ralenti à 2,87%, marquant le premier début d'année sous les trois pourcents depuis 2021.
Les principales conclusions incluent : la croissance des salaires hebdomadaires est tombée à 2,12% (la plus basse depuis janvier 2019), les heures de travail hebdomadaires ont diminué de -0,77% (la plus basse depuis octobre 2021). La région du Midwest a mené la croissance de l'emploi avec un indice de 100,23, l'Indiana se classant au sommet des classements des États à 101,67. Le secteur de l'éducation et des services de santé a conservé la tête du classement en matière de croissance de l'emploi (101,72), tandis que le secteur manufacturier a chuté à 97,13, son niveau le plus bas depuis mars 2021.
Der Paychex Small Business Employment Watch berichtet, dass US-amerikanische Kleinunternehmen mit weniger als 50 Mitarbeitern im Januar 2025 ein leichtes Beschäftigungswachstum von etwas unter 100 aufwiesen, wodurch sich der Trend aus dem späten Jahr 2024 fortsetzt. Das Wachstum der Stundenlöhne verlangsamte sich auf 2,87% und markierte den ersten Jahresbeginn unter drei Prozent seit 2021.
Wichtige Erkenntnisse umfassen: das Wachstum der wöchentlichen Einnahmen fiel auf 2,12% (das niedrigste seit Januar 2019), die wöchentlichen Arbeitsstunden sanken um -0,77% (das niedrigste seit Oktober 2021). Die Midwest-Region führte das Beschäftigungswachstum mit einem Index von 100,23 an, wobei Indiana mit 101,67 die bundesstaatlichen Rankings anführte. Der Bildungs- und Gesundheitssektor behielt die Führungsposition im Beschäftigungswachstum (101,72), während die Fertigungsindustrie auf 97,13 fiel, das niedrigste Niveau seit März 2021.
- Midwest region maintains employment growth leadership with 100.23 index
- Education and Health Services sector shows strong performance with 101.72 index
- Indiana leads state rankings with 101.67 index
- Hourly earnings growth declined to 2.87%, lowest since 2021
- Weekly earnings growth fell to 2.12%, lowest since January 2019
- Weekly hours worked decreased by -0.77%, lowest since October 2021
- Manufacturing sector declined to 97.13, lowest since March 2021
Insights
The latest Paychex Small Business Employment Watch presents a mixed picture that has significant implications for both the company and broader market sentiment. The sustained sub-100 job growth index (99.68) and notable wage growth deceleration to
The dramatic slowdown in weekly earnings to
- Small businesses are likely to need more sophisticated payroll and HR solutions to manage complex scheduling and compensation structures
- The moderation in wage inflation could improve small business profitability, potentially reducing client churn for Paychex
- Regional variations, particularly the Midwest's strength (100.23 index), suggest opportunities for targeted service expansion
The sustained leadership of Education and Health Services (101.72 index) in job growth represents a particularly stable revenue stream for Paychex, as these sectors typically have lower business failure rates and consistent payroll needs. However, the manufacturing sector's decline to its lowest level since March 2021 warrants attention, as it could indicate broader economic challenges ahead.
The moderation in wage growth, while potentially concerning for workers, suggests the Fed's monetary policy is achieving its intended effects. This could lead to a more stable interest rate environment in 2025, which would benefit Paychex's float income from payroll funds.
Hourly wage growth for workers starts the new year below three percent for first time since 2021
According to the Paychex Small Business Employment Watch, the pace of small business job growth remained slightly below 100 in January, consistent with the last six months of 2024. (Graphic: Business Wire)
“Small businesses successfully navigated an evolving economic landscape, challenging labor market, and an election in 2024,” said John Gibson, Paychex president and CEO. “Last year delivered moderate job growth and continued moderation in wage inflation. Entering 2025, small business owners are more optimistic, but as of January that optimism hasn’t translated into accelerated job growth when compared to the last quarter of 2024.”
“With cooling wage inflation and increased optimism, the labor environment should position small businesses for continued moderate job growth in the new year,” Gibson added.
Jobs Index and Wage Data Highlights
- The national small business jobs index was 99.68 in January.
-
Hourly earnings growth (
2.87% ) continued to moderate in January, as one-month annualized growth has been below three percent since May 2024. -
Weekly earnings growth has quickly decelerated in recent months to
2.12% in January 2025, marking its lowest level since January 2019 (2.10% ). Similarly, weekly hours worked growth decreased further in January (-0.77% ) to its lowest level since October 2021. - With an index level of 100.23 in January, the Midwest remained the top region for employment growth for the eighth consecutive month. Leading the region, Indiana’s index gained 2.02 percentage points (101.67) to reclaim the top rank among states, a position the Hoosier State held for half of 2024.
-
Of the four
California metros analyzed,Los Angeles was the only area to report its pace of job growth slowing in January, possibly due to the impacts of significant wildfires. - Education and Health Services (101.72) continued as the top sector for job growth for the eighth consecutive month, while the rate of job growth in the Manufacturing (97.13) industry slowed 1.12 percentage points to its lowest level since March 2021.
More Information
For more information about the Paychex Small Business Employment Watch, visit the website 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 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 more than 745,000 customers in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204239786/en/
Media Contacts
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 is the current hourly earnings growth rate for PAYX small business clients in January 2025?
Which region showed the strongest small business employment growth in PAYX January 2025 report?
What was the weekly earnings growth rate for PAYX small businesses in January 2025?
Which industry sector showed the highest job growth in PAYX's January 2025 report?
How did the Manufacturing sector perform in PAYX's January 2025 employment report?
