Small Businesses Continue to Show Moderate Job Growth in October

Paychex Small Business Employment Watch also shows the immediate impact of recent hurricanes in Florida and North Carolina

The Paychex Small Business Employment Watch reported a national index level of 100.06 for small business job growth in the month of October. The jobs index has averaged 100.29 through the first 10 months of 2024, indicating modest job growth in U.S. small businesses with fewer than 50 employees. At the same time, hourly earnings growth in October was 3.02% and weekly earnings growth remained below three percent for the ninth-straight month, marking its lowest level since August 2021.

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According to the Paychex Small Business Employment Watch for October, the national small business jobs index has averaged 100.29 so far in 2024, representing modest employment growth. (Graphic: Business Wire)

The October report was impacted by multiple hurricanes. The jobs index in Florida (99.62) fell below 100 for the first time since March 2021, including a 1.81 percentage-point decrease for Tampa (97.91), which ranked last among top U.S. metros for the month. North Carolina (99.80) dropped 1.13 percentage points and eleven spots in the state rankings for October.

"Given the near real-time nature of our data collection, we can already see the unfortunate aftereffects of Hurricanes Milton and Helene on small businesses in Florida and North Carolina," said John Gibson, Paychex president and CEO. "The immediate devastation can clearly be seen in notable employment and hours worked growth drops in both states. However, we anticipate a rebound in local jobs and hours worked over the next several months, as well as an increase in job opportunities for workers in surrounding areas to assist in the rebuilding efforts."

"As we enter the last quarter of 2024, we continue to see moderate, stable job growth for small businesses and earnings for their workers remaining steady," Gibson added. "Employers are still facing challenges like finding qualified employees, controlling benefits costs, and accessing affordable growth capital, but we know from more than a half century of experience supporting small businesses that they are consistently resilient."

Jobs Index and Wage Data Highlights

• The national small business jobs index has averaged 100.29 so far in 2024, representing modest employment growth.
• National hourly earnings growth increased marginally to 3.02% in October. Three-month annualized hourly earnings growth has been reported below three percent for the past six months.
• Weekly hours worked growth (-0.20%) across the U.S. remained negative year-over-year for the 19th consecutive month.
• The Midwest (100.79) gained 0.40 percentage points in October and remained the top region for small business employment growth for the fifth consecutive month. Strong gains in Education and Health Services across top-ranked Indiana, Michigan, Ohio, and Wisconsin contributed most to job growth in the region.

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 U.S. economy. The jobs index is scaled to 100, which represents no year-over-year change in job growth among same store businesses. Index values above 100 represent new jobs being added, while values below 100 represent jobs being lost.

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 U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. To learn more, visit paychex.com.

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