ROCHESTER, N.Y., April 2, 2019 /PRNewswire/ -- The
Paychex | IHS Markit Small Business Employment Watch showed its first job growth decrease of 2019 in
March. After remaining relatively flat in January and February, the Small Business Jobs Index declined 0.15 percent to 98.78.
However, despite a 0.88 percent slowdown year-over-year, the first calendar quarter of 2019 represents the strongest quarter in
the past year. Hourly earnings growth moderated slightly to 2.52 percent ($0.66) in March, while
annualized one-month and three-month growth rates were closer to three percent.
"After two flat months to start 2019, the national index resumed its decline in March to 98.78" said James Diffley, chief regional economist at IHS Markit.
"The challenges of hiring in the tight labor market continued in March as small business job growth declined," said Martin Mucci, Paychex president and CEO. "As our latest Business Sentiment Report indicates, business owners' optimism about their ability to fill open positions
with qualified candidates remains low."
Broken down further by geography and industry, the March report showed:
- The South continues to lead regions in employment growth; the West remains the top region for hourly earnings growth by
nearly a full percent.
- Texas remained the strongest state for small business job growth; California is once again the top state for wage growth.
- Dallas took the top spot among metros in job growth; San
Diego took the lead among metros for wage growth.
- Though it remains one of the strongest sectors for small business employment growth, Construction fell below 100 for just
the second time in more than seven years.
The complete results for March, 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
- At 98.78, the index is down 0.88 percent from last March as small business employment growth continues to weaken
nationally.
- Despite a 0.11 percent slowdown, the first calendar quarter of 2019 represents the strongest three-month growth rate of the
last four quarters.
National Wage Report
- Hourly earnings growth remains slightly above two and a half percent, though annualized one-month and three-month growth
rates are closer to three percent.
- At $875.70, the national average for weekly earnings is up $17.68 from last year (2.06 percent).
Regional Jobs Index
- Due to strong gains in Texas, the South continues to lead regional small business
employment growth.
- At 97.67, the Northeast continues to lag other regions in small business employment growth, down 0.22 percent in
March.
Note: Percentages displayed in the regional heat map reflect 12-month changes.
Regional Wage Report
- Leading at $28.52/hour and 3.21 percent growth, the West is close to a dollar and a percent
higher than the other three regions in hourly earnings growth.
- The South and the Midwest have weekly earnings growth below two percent.
Note: Percentages displayed in the regional heat map reflect 12-month changes.
State Jobs Index
- Texas leads all states in small business employment growth at 101.36, while Georgia and Washington also increased to above 100, joining Arizona and Indiana.
- Four states have index levels below 98 and all four are located in the Northeast (New
Jersey, Massachusetts, New York, and Pennsylvania).
Note: Analysis is provided for the 20 largest states based on U.S. population.
State Wage Report
- California leads all states with 3.32 percent hourly earnings growth, slightly ahead of
the other states with hourly earnings growth above three percent (Missouri, New York, Washington, and Arizona).
- Eight of the 20 states report hourly earnings growth below two percent in March.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Metropolitan Jobs Index
- Houston is once again among the top five metros for small business employment growth, with
solid gains in the first quarter of 2019, joining Dallas, Tampa, Phoenix, and Seattle with an
index above 100.
- Riverside, California, with the largest year-over-year decrease among metros (3.86
percent), is now the lowest ranked metro index, displacing Philadelphia and Boston.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Metropolitan Wage Report
- San Diego (4.14 percent), Riverside, and Phoenix lead in hourly earnings growth.
- Weekly earnings growth in Detroit sits below one percent due to a decline in hours worked
from last year.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
Industry Jobs Index
- Construction fell below 100 for just the second time in more than seven years but remains one of the strongest sectors for
small business employment growth.
- At 97.76, the Trade, Transportation, and Utilities index slipped below 98 for the first time since 2010.
Note: Analysis is provided for seven major industry sectors.
Industry Wage Report
- Leisure and Hospitality, with the lowest average hourly earnings ($17.10/hour), leads sectors
in growth at 4.20 percent.
- With negative one-month annualized growth rates in both wages and hours worked, Other Services (except Public
Administration) ranks last among sectors in weekly earnings growth (0.42 percent year-over-year).
Note: Analysis is provided for seven major industry sectors.
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 over 650,000 payroll clients as
of May 31, 2018, 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 (Nasdaq: 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
lfleming@paychex.com
@PaychexNews
Kate Smith
IHS Markit
+1 781-301-9311
katherine.smith@ihsmarkit.com
Tess Flynn
Mower
+1 716-880-1488
tflynn@mower.com
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SOURCE Paychex, Inc.