Small Business Wage Growth Hits New High, Job Growth Consistent in November
The Paychex | IHS Markit Small Business Employment Watch shows hourly earnings growth at its highest level since 2011
ROCHESTER, N.Y., Dec. 3, 2019 /PRNewswire/ -- The tight labor market continues to positively impact wage growth, according to the latest Paychex | IHS Markit Small Business Employment Watch. Hourly earnings grew 3.11 percent among employees of small businesses, the highest level since reporting began in 2011. Weekly earnings continue to grow, accelerating 3.75 percent in November. Essentially unchanged from the previous month, the national jobs index moderated 0.03 percent, remaining above 98.
"Wage increases are finally beginning to reflect the tight labor market for small businesses," said James Diffley, chief regional economist at IHS Markit.
"Employers are responding to the challenges of the tight labor market," said Martin Mucci, Paychex president and CEO. "We've seen a steady climb in hourly earnings growth, now reaching the highest levels in nearly a decade."
Broken down further, the November report showed:
- The South continues to lead regional small business employment growth; the West retained its lead among regions in wage growth.
- Tennessee remains the leader among states in small business job growth; New York leads states for wage growth.
- Dallas is again the top metro for small business job growth; three California metros, Los Angeles, San Francisco, and San Diego, lead the nation in hourly earnings growth.
- Leisure and Hospitality leads all other sectors in hourly earnings growth.
The complete results for November, including interactive charts detailing all data at a national, regional, state, metro, and industry level, are available at www.paychex.com/employment-watch. Highlights are available below.
National Jobs Index
- Essentially unchanged in November, the Paychex | IHS Markit Small Business Jobs Index moderated 0.03 percent as the index continues to trend just above 98.
- Up 0.10 percent during the past quarter, the national index has a positive three-month growth rate for the first time since March 2017.
National Wage Report
- At 3.11 percent, hourly earnings growth is at its highest level since reporting began in 2011.
- Weekly earnings growth continues to accelerate in 2019, reaching 3.75 percent in November.
- Weekly hours worked are up 0.76 percent, the largest increase since May 2015.
Regional Jobs Index
- At 98.93, the South continues to lead regional small business employment growth.
- The Midwest (-1.51 percent) and the West (-1.30 percent) have the weakest 12-month growth rates among regions.
Regional Wage Report
- The West (3.67 percent) and Northeast (3.41 percent) far outpace the South (2.50 percent) and Midwest (2.62 percent) in hourly earnings growth.
- The West and Northeast have three-month annualized hourly earnings growth over four percent as gains have accelerated in both regions during the past quarter.
State Jobs Index
- At 100.50, Tennessee leads small business employment growth and is the only state with an index above 100.
- Missouri and Washington fell below 97 and are now at the bottom of the state rankings with significant declines in November.
Note: Analysis is provided for the 20 largest states based on U.S. population.
State Wage Report
- New York leads states in hourly earnings growth (4.39 percent), with three-month annualized growth above five percent.
- In the West, California leads hourly earnings growth (4.24 percent), while Arizona (2.11 percent) has slowed significantly this year.
- Texas and Indiana have the weakest hourly earnings gains among states, with less than two percent growth from a year ago.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Metropolitan Jobs Index
- Dallas continues to lead small business employment growth among metros despite a slight decline in November, which brought its index to 100.44.
- Up 0.91 percent in November, Tampa surged to second best among metros at 99.53.
- San Francisco and Houston also had significant increases, improving the ranking of both metros in November.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Metropolitan Wage Report
- Three California metros, Los Angeles, San Francisco, and San Diego, lead the nation in hourly earnings growth with rates above four percent.
- Tampa, Minneapolis, and Houston lag in hourly earnings growth, failing to exceed two percent.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Industry Jobs Index
- There was little change in employment growth rates among industries in November, though all sectors are now below 100.
- Manufacturing and Trade, Transportation, and Utilities had the strongest gains from the previous month but remain below 97.
Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found here. The Other Services (excluding 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
- At 5.16 percent, Leisure and Hospitality leads all other sectors in hourly earnings growth.
- Manufacturing remains above four percent in hourly earnings growth, though gains slowed slightly in November.
Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found here. The Other Services (excluding 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/employment-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 the Paychex | IHS Markit Small Business Employment Watch
The Paychex | IHS Markit Small Business Employment Watch is released each month by Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small-to medium-sized businesses, and IHS Markit, a world leader in critical information, analytics, and expertise. Focused exclusively on small business, the monthly report offers analysis of national employment and wage trends, as well as examines regional, state, metro, and industry sector activity. Drawing from the payroll data of approximately 350,000 Paychex clients, this powerful tool delivers 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 payroll, benefits, human resources, 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 more than 45 years of industry expertise, Paychex serves approximately 670,000 payroll clients as of May 31, 2019 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 www.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 © 2019 IHS Markit Ltd. All rights reserved.
Media Contacts
Lisa Fleming
Paychex, Inc.
+1 585-387-6402
[email protected]
@PaychexNews
Kate Smith
IHS Markit
+1 781-301-9311
[email protected]
Tess Flynn
Mower
+1 716-880-1488
[email protected]
SOURCE Paychex, Inc.
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