Jobs index gains ground while hourly wage growth remains steady

According to the latest Paychex Small Business Employment Watch, which is based on the payroll data of Paychex’s customers with fewer than 50 employees, the small business employment growth rate edged higher in November. The report's Small Business Jobs Index rose to 99.38, up 0.11 percentage points from October, while hourly earnings growth increased marginally to 2.66%, demonstrating consistency across the small business sector.

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According to the Paychex Small Business Employment Watch, job growth and hourly earnings growth rates have remained steady this year.

“November’s slight increase in the jobs index reinforces the stability we’ve seen throughout 2025,” said John Gibson, Paychex president and CEO. “Small businesses with fewer than 50 employees have navigated a challenging year and continue to cite finding and retaining qualified talent as a top business challenge. Hourly earnings growth has stabilized at 2.66%, remaining below three percent for the 16th-straight month, which is helping many employers plan more effectively.”

Jobs Index and Wage Data Highlights

• The national Small Business Jobs Index for November was 99.38, up 0.11 percentage points from October and down slightly 0.53 percentage points from last November.
• National hourly earnings growth rose to 2.66% in November, remaining below three percent since August 2024 (16 months).
• The Midwest (99.79) remained the top region for small business employment growth for the 18th consecutive month. Indiana (101.22) led all states in the jobs index in November, gaining 1.54 percentage points during the past quarter.
• Phoenix (100.34) topped metro areas for employment growth, followed by Philadelphia (100.32) and Dallas (100.11).
• Education and Health Services (100.64) led industry sectors for small business job growth for the 18th consecutive month. Manufacturing slowed 0.73 percentage points to 98.32 in November, last among sectors.

More Information

Since 2014, the Paychex Small Business Employment Watch has been a trusted source of employment trends for U.S. small businesses with fewer than 50 employees. The Employment Watch website offers interactive charts and historical data across the report’s two key components – the jobs index and wage data. Visit the Bloomberg Terminals or subscribe to receive monthly alerts with the latest data.

About the Paychex Small Business Employment Watch

The Paychex Small Business Employment Watch is released each month by Paychex, Inc. Only 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 industry benchmark delivers real-time insights into the small business trends driving the U.S. economy.

*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.

About Paychex

Paychex, Inc. (Nasdaq: PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today’s workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company’s purpose of helping businesses succeed. Visit paychex.com to learn more.

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