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U.S. Small Business Employment Remains Stable in February

By: via Business Wire

Hourly earnings growth for workers continued below three percent

According to the Paychex Small Business Employment Watch, the Small Business Jobs Index, which measures employment growth among U.S. businesses with fewer than 50 employees, was 100.04 to indicate moderate job growth. Meanwhile, hourly earnings growth for small business workers remained below three percent (2.92%) for the fourth-straight month.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250304866775/en/

Job growth among U.S. small businesses remained stable in February while wage growth reported below three percent. (Graphic: Business Wire)

Job growth among U.S. small businesses remained stable in February while wage growth reported below three percent. (Graphic: Business Wire)

“Our employment data continues to show moderate job growth and wage growth below three percent,” said John Gibson, Paychex president and CEO. “The consistent long-term trend we’re seeing is a small business labor market that is resilient and stable with little job movement among workers. At the same time, small business owners are optimistic about future business conditions despite uncertainty about how to adapt to a rapidly evolving legislative and regulatory landscape.”

Jobs Index and Wage Data Highlights

  • The national jobs index increased to 100.04 in February.
  • Hourly earnings reported 2.92% growth in February and has been essentially flat for the past seven months, ranging from 2.90% to 3.01%.
  • The Midwest remained the top region for the ninth consecutive month with a jobs index level of 100.54.
  • Seven of the 20 states analyzed gained more than one percentage point in February, led by Texas (+2.11 percentage points).
  • Phoenix (101.92) increased its pace of small business job growth for the fourth consecutive month in February to rank first among the largest U.S. metros.
  • Construction (3.29%) regained its top rank among industries for hourly earnings growth in February, followed closely by Other Services (3.27%) and Manufacturing (3.21%).
  • The pace of job growth in Manufacturing gained 2.39 percentage points to 99.52 in February, marking the industry’s largest one-month increase since April 2021.

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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