Small Business Employment Trends Maintain Steadiness in October
Recent insights from the Paychex Small Business Employment Watch reveal that employment among small businesses—defined as those with fewer than 50 employees—remained stable throughout October.
The Small Business Jobs Index exhibited minimal fluctuation, shifting less than one percentage point over the past year, thereby reflecting a trend of moderated hiring within this sector.
While the rate of hourly earnings growth for small business workers saw a slight decrease to 2.58%, it has remained below the three percent threshold for the last 15 months. However, an increase in weekly earnings was recorded, attributed to extended hours worked during the month.
Hourly earnings growth for employees in U.S. enterprises with fewer than 50 workers has consistently remained below three percent in October, as reported by the Paychex Small Business Employment Watch.
“The landscape of the small business employment market remains resilient among organizations with fewer than 50 employees,” stated John Gibson, President and CEO of Paychex.
A noteworthy trend is emerging, with employers increasingly resorting to their existing talent pool to extend working hours.
Notably, we observed an uptick in weekly hours across all regions during October, marking the second consecutive month where one-month annualized growth surpassed three percent—a benchmark not achieved in nearly a decade.
Small business proprietors continue to voice that accessing qualified labor remains a significant hurdle, prompting them to explore avenues to optimize their current workforce.
Highlights of Jobs Index and Wage Data
- The national Small Business Jobs Index for October registered at 99.27.
- Hourly earnings growth at a national level was recorded at 2.58% for October, persistently below three percent since August 2021 (15 months).
- Growth in national weekly hours worked surged by 0.44% in October, representing the most significant gain since April 2021 (0.78%). Every region reported positive growth in weekly hours worked over a twelve-month period, with one- and three-month annualized growth rates exceeding one percent.
- Weekly earnings growth nationwide rose to 2.94% in October, indicating the highest level since January 2024 (3.07%).
- The Midwest maintained its status as the leading region for small business employment growth for the 17th consecutive month.
Further Information
Since its inception in 2014, the Paychex Small Business Employment Watch has served as a reliable gauge of employment trends for U.S. small businesses with fewer than 50 employees.
The Employment Watch website features interactive graphs and historical data reflecting the report’s critical components: the jobs index and wage data. Monthly alerts with the latest statistics can be acquired by subscribing to updates.
About the Paychex Small Business Employment Watch
The Paychex Small Business Employment Watch is a monthly release from Paychex, Inc., exclusively focusing on enterprises with fewer than 50 workers.
This report delivers an analysis of national employment and wage dynamics while investigating regional, state, metropolitan, and industry-specific activities.
Utilizing payroll data from approximately 350,000 Paychex clients, this benchmark provides real-time insights into the small business factors driving the U.S. economy.
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