Small business wage growth moderates as 2022 closes.

Paychex data shows that small business growth is steady

Rochester, New York, January 3, 2023 /PRNewswire/ — Hourly wage growth for U.S. small businesses continued to slow to 4.95 percent year-over-year in December, according to the latest Paychex | IHS Markit Small Business Hours of Operation. Additionally, the Small Business Activity Index, which measures national employment growth for businesses with fewer than 50 employees, was unchanged from last month at 99.38.

“The Paychex | IHS Markit Small Business Jobs Index expanded in December, following nine months of moderation. In addition, as the Fed takes steps to combat inflation, the increase in small-time wages will slow,” he said. James DiffleyChief Regional Economist at IHS Markit

Despite various headwinds, including inflation, staffing issues and changing regulations, US small businesses have proven to be creative and resilient in the face of challenges since the pandemic began. John Gibson, Paychex President and CEO. “As we head into 2023, small business owners and their employees are working longer hours and looking for ways to deal with inflation and higher borrowing costs.”

In more detail, the December report revealed the following.

• At 99.38 December 2022 The national job index was unchanged from last month and was a full point higher than the monthly average in the year before the outbreak.March 2019 – February 2020).
• Year-over-year growth in hourly earnings fell to 4.95 percent in December, the weakest since. March 2022.
• One-month annual hourly earnings growth was below four percent for the third time in the past four months.
• At 0.48 percent, one-month annualized weekly hours of employment growth was positive for the fourth consecutive month.
• Entertainment and hospitality continued to lead among sectors in hourly earnings growth (6.75 percent) and weekly hourly final employment growth (-0.52 percent).
• The jobs index in the South rose for the third consecutive month to 100.72. The South has led the pace of small business growth among regions in the past nine months.
• Tennessee It has improved to 3.20 percent by 2022, representing the highest growth rate among the regions. even if Tennessee A year ago, he reached the last level among the states December 2021The state now ranks seventh at 100.34.
• Houston (102.75) and Dallas (102.08) have two of the strongest jobs indicators among metros for the seventh consecutive month.

Paychex solutions reach 1 in 12 American private sector workers, making Small Business Employment Watch the industry benchmark. Based on payroll data from nearly 350,000 Paychecks customers and employees under 50, the monthly report provides analysis of national employment and wage trends and examines regional, state, metro and industry sector activity.

Complete results for December, including interactive charts detailing all the data, are available at www.paychex.com/watch. Highlights are below.

National Job Directory

• At 99.38 December 2022 The national job index was unchanged from last month.
• The national job index has fallen 1.54 percent over the past 12 months, but in recent months has reached the end of 2022.

National salary report

• Over the past 12 months, hourly earnings growth fell to 4.95 percent, the weakest since. March 2022.
• One-month annualized weekly earnings growth was below four percent for the third time in the past four months.
• At 0.48 percent, one-month annualized weekly hours of employment growth was positive for the fourth consecutive month. Twelve-month weekly hours of employment growth (-0.27 percent) remains negative, for the 20th consecutive month.

Directory of Regional Works

• The jobs index in the South rose for the third consecutive month to 100.72. The South has led the pace of small business growth among regions in the past nine months.
• Last December, it was the first among the regions at 101.22, the western region has decreased by 2.52 percent in 2022 and is now ranked the lowest among the regions at 98.67.

Regional salary report

• At 5.50 per cent hourly earnings, the only region with a growth of more than five per cent is the South, the highest for the past three quarters.
• The South ranked first among the regions in terms of revenue growth and last quarter in terms of hours worked. In contrast, the Northeast ranked last in terms of revenue growth, showing first growth in hours over the past seven months.
• Weekly earnings growth in the West slowed sharply in the past two months to 4.48 percent in December. In the West, one-month annualized weekly earnings growth was less than two percent in both November and December.

Directory of State Works

• North Carolina (102.26) and Texas (101.96) continues to lead states in small business growth rate in December.
• Tennessee The index (100.34) improved by 3.20 percent in 2022, representing the highest growth rate among regions. Tennessee It is placed at the last level among the states December 2021 And now it is in seventh place at 100.34.
• West Coast States Washington (-3.03 percent) and California (-2.92 percent) have the weakest 12-month rates of change among states.
• Of the twenty states analyzed, ten states increased and ten states decreased in December.

Note: Analysis is provided for the 20 largest US states by population.

State salary report

• Florida (6.44 percent) leads the region in hourly earnings growth, followed by Missouri And TexasA growth of more than six percent.
• Virginia (3.35 percent) ranks last among regions in hourly earnings growth for the seventh consecutive month.
• Due to the effects of Hurricane Ian, the one-month annualized week-hours employment growth increased to 4.32 percent. Florida, the maximum amount over two years. For context, Florida The result is two and a half times greater than the next state, New Jersey by 1.73 percent.

Note: Analysis is provided for the 20 largest US states by population.

Directory of Metropolitan Works

• Houston (102.75) and Dallas (102.08) have two of the strongest jobs indicators among metros for the seventh consecutive month.
• Riverside It is down 0.79 percent from last month and 4.48 percent from last year.
• Apart from the 0.02 percent increase in September, Minneapolis By 2022, it has decreased every month, showing a total decrease of 4.13 percent. Minneapolis The index closed at 103.63 in 2021 and 99.35 in 2022.

Note: Analysis is based on US population for the 20 largest metro areas.

Metropolitan salary report

• Miami Top metros in both hourly revenue growth (6.61 percent), as well as weekly revenue growth (6.27 percent).
• San Francisco (39.45 dollars/ hour) and Washington (38.73 dollars/hour) have the highest hourly rates among metros by a wide margin, but rank in the bottom three for growth in December.
• Weekly income growth Detroit It fell to 3.09 percent, weakest among metros. Annual growth of one month’s weekly income Detroit It fell to its lowest level since 2020 at -1.76 percent.
• San Francisco It was the only metro with positive weekday job growth (0.04 percent).

Note: Analysis is based on US population for the 20 largest metro areas.

Directory of industrial works

• In the year Despite a 5.32 percent decline in 2022, the Leisure and Hospitality Jobs Index rebounded slightly in December, remaining strong at 100.06.
• Education and health services (100.09) trail only other services for the highest index and have the strongest one-month (0.18 percent) and 12-month (0.30 percent) rates of change among sectors.
• The growth rate of small business is very consistent in the construction sector (98.41) because the index is between 98 and 99 for 20 consecutive months.

Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found over here. Another services (except public administration) industry category includes religious, civic, and social organizations, as well as personal services, auto and home repair, salons, dry cleaners, and other businesses.

Industry Wage Report

• Entertainment and hospitality continued to lead among sectors in hourly earnings growth (6.75 percent) and weekly hourly final employment growth (-0.52 percent).
• Entertainment and hospitality was the only sector to report hourly earnings growth between November and December.
• At 4.08 percent, education and health services posted the weakest hourly earnings growth for the 15th consecutive month.
• Construction was the only sector with weekly employment growth (0.14 percent) and has since been ranked first among sectors. March 2022.

Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found over here. Another services (except public administration) industry category includes religious, civic, and social organizations, as well as personal services, auto and home repair, salons, dry cleaners, and other businesses.

About Paychex | For more information, visit the IHS Markit Small Business Employment Watch www.paychex.com/watch And open up To receive monthly employment hour alerts.

* Information about the professions included in the industry information can be found in Bureau of Labor Statistics website.

About Paychex | IHS Markit Small Business Hours

of Paychex | The IHS Markit Small Business Employment Watch is published monthly by Paychex, Inc., a provider of integrated human capital management software solutions for human resources, payroll, benefits and insurance services, and IHS Markit, a world leader in critical data, analytics. And knowledge. Focused exclusively on small businesses with fewer than 50 employees, the monthly report provides an analysis of national employment and wage trends, and examines regional, state, metro and industry sector activity. Drawing on payroll data from nearly 350,000 Paychex customers, this powerful tool provides real-time insights into the small business trends driving the U.S. economy.

About Paychex

Paychex, Inc. (Nasdaq:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits and insurance services. By combining an innovative software-as-a-service technology and mobility platform with dedicated, personalized service, Paychex allows business owners to focus on growing and managing their business. Backed by 50 years of industry expertise, Paychex serves more than 730,000 payroll clients. May 31, 2022 In the US and EuropeAnd it pays one in 12 US private sector workers. Learn more about Paychex by visiting www.paychex.com And stay connected Twitter And LinkedIn.

IHS Markit (NYSE: INFO) is a leader in critical information, analytics and solutions for the major industries and markets that drive economies around the world. The company delivers next-generation data, analytics and solutions to clients 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 commercial and government clients, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. In the headquarters LondonIHS Markit is committed to sustainable, profitable growth.

IHS Markit of IHS Markit Ltd. and/or its affiliates is a registered trademark. All other company and product names may be trademarks of their respective owners © 2021 IHS Markit Ltd. all rights reserved.

Media contacts
Chris Mueller
Paychex, Inc.
+1 585-338-4346
[email protected]
@Paychex

Kate Smith
IHS Markit
+1 781-301-9311
[email protected]

Source: Paychex, Inc.