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Paychex data also shows that January annual hourly wage growth for small business employees fell to the lowest level since 2020
Rochester, New York, January 31, 2023 /PRNewswire/ — US small business hourly wage growth continued to fall to 4.66% y/y in January, according to the latest Paychex. IHS Markit Small Business Employment Watch. Additionally, month-to-month annualized earnings growth fell to 2.88% in January, the lowest level since December 2020. The Small Business Employment Index, which measures national employment growth in businesses with less than 50 employees, rose 0.18% to 99.56.
“Our small business wage data shows that wage growth is slowing, as was the Fed’s monetary policy target. James DiffleyChief Regional Economist, IHS Markit.
“Small businesses have struggled to attract and retain employees over the past two years, but the employment index shows that employment continues to grow as wage growth moderates,” he said. John Gibson, Paychex President and CEO. “The wage index also shows that small business employees are working more hours to increase their income.”
In more detail, a January report showed that:
- The National Employment Index (99.56) rose 0.18% in January. January 2022.
- At 2.88%, monthly annualized hourly wage growth fell below 3% for the first time since 2020.
- Hourly wage growth slowed to 4.66% in January, the lowest level since then. January 2022.
- Monthly annual growth in hours worked (1.56%) was the highest level since mid-2020 and was positive for the fifth straight month.
- Workweek growth turned positive for the first time since (0.02%) April 2021.
- All four regions reported job increases in January, with increases in 15 of the 20 states analyzed.
- The South rose 0.10% in January to 100.82, marking its fourth straight month of growth and the tenth straight month of the fastest small business employment growth.
- north carolina (102.19) eased 0.07% in January, but remained the top state for small business employment growth for the seventh straight month.
- With an employment index of 103.00, houston Significant lead over Metro in January, previously second-ranked Metro Dallas It fell 1.23% to 100.82, placing it fifth among metropolitan areas.
- Improving to 98.94, construction rose 0.54% in the January employment index, the strongest one-month change in almost two years.
- While hourly wage growth slowed in all other sectors, leisure and hospitality accelerated to 6.82% in January.
Paychex solutions reach 1 in 12 US private sector employees, making Small Business Employment Watch an industry benchmark. Based on salary data from approximately 350,000 Paychex clients with fewer than 50 employees, this monthly report analyzes employment and wage trends across the country, and analyzes regional, state, metropolitan and industry sector trends. Investigating activity.
Full results for January, including interactive charts detailing all the data, are available at www.paychex.com/watch. Highlights are available below.
national employment index
- The National Employment Index (99.56) rose 0.18% in January. January 2022.
- The employment index stands at 99.56, improving in early 2023 (0.18%) but still down 1.75% from last year.
national wage report
- Hourly wage growth slowed to 4.66% in January, the lowest level since then. January 2022.
- At 2.88%, monthly annualized hourly wage growth fell below 3% for the first time since 2020.
- Monthly annual growth in hours worked (1.56%) was the highest level since mid-2020 and was positive for the fifth straight month.
- Workweek growth turned positive for the first time since (0.02%) April 2021.
Regional Employment Index
- All four regions reported increases in January, with the Midwest leading the way with a 0.35% increase.
- The South rose 0.10% in January to 100.82, marking its fourth straight month of growth and the tenth straight month of the fastest small business employment growth.
Regional Wage Report
- The South has led the region in hourly wage growth since then at 5.02%. August 2022 Since then, it has reported growth of over 5% March 2022.
- Workweek growth in the Northeast is the strongest in the region, with a 12-month growth rate of 0.22% and a one-month annual growth rate of 2.56%.
- The Midwest ranks lowest among regions for hourly wages ($29.32 per hour) and growth rate (4.53%).
state job index
- Job gains were widespread, as 15 of the 20 states analyzed reported increases in January.
- north carolina (102.19) eased 0.07% in January, but remained the top state for small business employment growth for the seventh straight month.
- Three states in the East North Central sector have improved the most among states in the past quarter. Wisconsin (2.02%), Illinois (1.47%), and Indiana (1.27%).
Note: Analysis is provided for the 20 largest states based on US population.
state wage report
- florida Hourly wage growth (6.19%) remains the strongest in the state for the past five months, despite slowing for the third month in a row.
- Moreover floridaand other states with hourly wage growth exceeding 5% in January are: Missouri, texas, IndianaWhen Wisconsin.
- at 3.21 percent, Virginia It ranks lowest among states in hourly income growth and has the lowest monthly annual growth rate in January (1.66%).
- Two months ago, it ranked last in the state, but weekly work hours increased florida It currently ranks third at 0.29%. Monthly annual growth exceeded 5% in both December and he January.
Note: Analysis is provided for the 20 largest states based on US population.
metropolitan employment index
- at 103.00, houston Significant lead over Metro in January, previously second-ranked Metro Dallas It fell 1.23% to 100.82, placing it fifth among metropolitan areas.
- The only cities with an index below 98 are all in the following regions: California (Riverside, San DiegoWhen San Francisco).
Note: Analysis is provided for 20 metropolitan areas based on US population.
metropolitan wage report
- Miami It ranks first among metropolitan areas for both hourly (6.37%) and weekly (6.60%) revenue growth, and is the only metropolitan area to grow above 6% in both categories.
- at 0.49 percent, New York is the top-ranked metropolitan area for weekly work week growth in January.
- Hourly revenue growth Riverside (4.84%) slowed sharply to 2023 as the one-month annualized growth rate reached its lowest level since 2014 (-2.82%).
Note: Analysis is provided for 20 metropolitan areas based on US population.
industry job index
- Leisure and hospitality rose 0.27% to 100.33 in January, marking the third straight month of accelerating small business employment growth.
- Improving to 98.94, construction rose 0.54% in January, marking the strongest one-month rate of change in nearly two years.
- Financial activity slowed from 0.07% to 97.27, being the only sector to decelerate and remaining at the bottom of 2023.
Note: Analysis is provided for seven major industry sectors.You can find definitions for each industry sector hereThe Other Services (excluding Government) industry category includes religious, civic, and social organizations, and personal services, including auto and home repair, salons, dry cleaning, and other businesses.
industry wage report
- While hourly wage growth slowed in all other sectors, leisure and hospitality accelerated to 6.82% in January.
- Growth in education and health services ranks lowest among sectors in terms of hourly wages (3.88%), weekly wages (3.70%) and weekly working hours (-0.28%).
- Construction’s hourly earnings growth was capped at 5.05%, but was the third to improve among sectors, behind leisure and hospitality (6.82%) and other services (5.10%).
Note: Analysis is provided for seven major industry sectors.You can find definitions for each industry sector hereThe Other Services (excluding Government) industry category includes religious, civic, and social organizations, and personal services, including auto and home repair, salons, dry cleaning, and other businesses.
For more information on Paychex | IHS Markit Small Business Employment Watch, visit www.paychex.com/watch When Sign up Receive monthly employment monitoring alerts.
* For occupations included in industry data, Bureau of Labor Statistics website.
About Paychex | IHS Markit Small Business Employment Watch
Paychex | IHS Markit Small Business Employment Watch joins Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, and a global leader in critical information and analytics. It is released monthly by an IHS Markit. , and expertise. Focusing exclusively on small businesses with fewer than 50 employees, this monthly report analyzes employment and wage trends across the country, examining local, state, metro and industry sector activity. Based on payroll data from nearly 350,000 of his Paychex clients, this powerful tool provides real-time insight into the dynamics of the small businesses that drive the US 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. Paychex combines innovative software-as-a-service technology and mobility his platform with dedicated personal services, enabling business owners to focus on growing and managing their businesses. Backed by 50 years of industry expertise, Paychex currently serves over 730,000 payroll clients. May 31, 2022 United States and Europeand pays 1 in 12 private sector employees in the United States. Learn more about Paychex here. www.paychex.com stay connected twitter When LinkedIn.
About IHS Markit (www.ihsmarkit.com) IHS Markit (NYSE: INFO) is a global leader in critical information, analytics and solutions for the major industries and markets that drive the world’s economies. The company provides next-generation information, analytics and solutions to business, financial and government customers to improve operational efficiency and deliver deep insights that lead to informed and confident decisions. IHS Markit has over 50,000 corporate and government customers, including 80% of the Fortune Global 500 and the world’s leading financial institutions.Head office location LondonIHS Markit is committed to sustainable and 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.
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