Employment growth at SMEs remains stable in May

Hourly Wage Growth for U.S. Workers Slows

Rochester, New York, May 30, 2023 /PRNewswire/ — According to the latest Paychex | May, small business employment growth was unchanged from April. IHS Markit Small Business Employment Watch. The National Small Business Employment Index, which shows the growth rate of small business employment in the United States, was 99.45, down 0.04% from April. Meanwhile, hourly wage growth for U.S. workers slowed to 4.33%.

“While the small business job market remains stable in 2023, hourly wage growth continues to slow,” he said. James DiffleyChief Regional Economist at S&P Global Market Intelligence.

“Despite the challenges of a competitive labor market and tightening credit, our data suggests that small businesses continue to remain resilient amid robust job growth,” he said. said. John Gibson, President and CEO of Paychex. “Our data also show a consistent trend of slowing hourly wage growth in 11 of the last 12 months, perhaps providing some relief to companies looking to hire. will be.”

The May report went further, showing:

• The employment growth rate for SMEs was 99.45, 1.41% lower than the previous year (100.87).
• Nationwide, wage growth continues to decline, with both hourly (4.33%) and weekly (3.96%) growth slowing in May.
• The South has led the region in small business employment growth for 14 years.^th 100.47 for the month in a row.
• north carolina Leading employment growth among 11 states^th 101.48 for the month in a row.
• texas It ranks first among states in both hourly wages (5.46%) and weekly earnings growth (4.99%).
• houston For the seventh consecutive month, it was again the top metropolitan city in terms of employment growth for small and medium-sized enterprises. houston Hourly income growth in May (5.34 percent) also ranked first among metropolitan areas.
• Construction is the top sector for all three wage data components: hourly wage growth (4.89%), weekly earnings growth (5.00%) and weekly hours worked growth (0.35%).

Paychex solutions are used by 1 in 12 US private sector employees, making small business employment monitoring an industry benchmark. Based on salary data from approximately 350,000 Paychex clients with fewer than 50 employees, the monthly report analyzes national employment and wage trends, as well as surveys regional, state, metropolitan and industry sector activity. I’m here.

full result of May 2023Available at www.paychex.com/watch, including interactive graphs detailing all data. You can see the highlights below.

national employment index

• The national index slowed by 0.24% in April and by 0.04% in May to 99.45, after rising each in the first three months of 2023.
• The employment growth rate for SMEs was 99.45, 1.41% lower than the previous year (100.87).

national wage report

• The steady slowdown in hourly wage growth continued in May, slowing to 4.33%.
• Weekly earnings growth is currently below 4.00% (3.96%), with 1-month and 3-month annual growth rates of 2.42% and 2.40%, respectively.
• Year-on-year growth in weekly hours worked remained moderate, falling to -0.36% in May.

Regional Employment Index

• The South leads the 14 regions in small business employment growth at 100.47.^th consecutive months.
• All regions experienced a year-on-year slowdown, with both the Northeast and West declining by more than 2% year-on-year.
• The Western Region’s job growth rate was 98.86, the lowest in the region, and has held that title ever since. November 2022. However, the only region to improve in May was the same region (0.14%).

Regional Wage Report

• The South leads the hourly wage growth rate among the 10 regions at 4.52%.^th consecutive months. The West (4.49%) and Midwest (4.40%) follow closely.
• The Northeast ranks lowest among the regions in hourly wage growth (4.26%) and is the only region with a monthly annual growth rate below 4% (3.28%).
• Growth in weekly hours worked is negative in all regions, with the lowest in the West (-0.69%).

state employment index

• at 101.48, north carolina Leading employment growth among 11 states^th consecutive months.
• The top three state indices (north carolina, Georgia, texas) had the lowest one-month change rate.
• Ranked in the bottom three states overall in 2022, Ohio Improving for 5 months in a row towards 2023, now ranked 11th^th 99.64 between states.

Note: Analysis is provided for the 20 largest states based on US population.

state wage report

• texas It ranks first in the state for hourly income growth (5.46%) and weekly income growth (4.99%).
• Indiana It has the lowest rate of hourly wage growth (3.82%) in the state, but the highest rate of increase in weekly working hours (0.34%).
• Hourly wage growth slowed to below 5% in 2019 from 4.93% in May. florida First time since 2021.
• Consistently high hourly wage growth of over 5% over the past year, Wisconsin It slowly moved up the state rankings, coming in second at 5.18% in May.

Note: Analysis is provided for the 20 largest states based on US population.

metropolitan employment index

• at 102.23, houston In metropolitan areas, it was ranked first for seven consecutive months. constant strength, houston Since then it has exceeded 101 August 2021.
• texas subway houston (-0.49%) and Dallas (-0.87%) May’s monthly rate of change was the lowest among metropolitan areas.
• Dallas The employment index slowed 6.21% from 105.33 a year ago. May 2022 up to 98.80 inches May 2023.
• phoenix (101.23) is up 0.69% from last year, the highest 12-month change rate among metropolitan areas.

Note: Analysis is provided for up to 20 metropolitan areas based on US population.

metropolitan wage report

• Ranked four places higher than in April, houston (5.34%) ranks first among metropolitan areas for hourly revenue growth in May. Minneapolis (5.14%) and Dallas (5.03%) also experienced hourly salary growth of more than 5%.
• San Francisco It ranks lowest among metropolitan areas for hourly revenue growth (3.23%) and weekly revenue growth (2.45%).
• Atlanta is among the bottom three metropolitan areas for hourly earnings growth (3.60%), weekly earnings growth (2.47%), and weekly work hours growth (-1.02%).
• baltimore is the top-ranked metropolis for weekly earnings and hours worked growth rates of 5.10% and 0.34% respectively.

Note: Analysis is provided for up to 20 metropolitan areas based on US population.

industry employment index

• May rose 0.10% to 101.39, with other services (excluding public administration) maintaining the top spot in the sector.
• Education and health services were at 100.81 and small business employment growth remained strong in May, growing just 0.03%.
• Leisure and hospitality remains strong at 100.52 in May, but is 3.38% below the pace of employment growth set last year (104.04).

Note: Analysis is provided for seven major industry sectors. Click here for definitions of each industry sector. The Other Services (Excluding Government) industry category includes religious, civic, and social organizations, as well as personal services such as auto and home repair, salons, dry cleaners, and other businesses. The dark blue bars in the chart reflect exponential levels, while the light blue diamonds reflect his 12-month change.

industry wage report

• Construction is the top sector for all three wage data components:
• Increase in hourly income (4.89%)
• Weekly Revenue Growth Rate (5.00%)
• Increase in weekly working hours (0.35%)
• Education and health services had the weakest earnings growth among sectors, with hourly growth of 3.69% and weekly growth of 2.92%.
• The growth rate of hourly wages in the leisure and hospitality industry (4.74%) fell below 5% for the first time in more than two years. Leisure and hospitality showed an average hourly growth rate of 7.75%. April 2021 finished April 2023.

Note: Analysis is provided for seven major industry sectors. Click here for definitions of each industry sector. The Other Services (Excluding Government) industry category includes religious, civic, and social organizations, as well as personal services such as auto and home repair, salons, dry cleaners, and other businesses.

Learn more about Paychex | Visit the IHS Markit Small Business Employment Watch, visit www.paychex.com/watch and sign up to receive monthly Employment Watch alerts.

*Occupational information included in industry data can be found on the website of the Bureau of Labor Statistics.

Payroll | IHS Markit Small Business Employment Watch
Paychex | The IHS Markit Small Business Employment Watch is published monthly by Paychex, Inc., a leading provider of outsourced payroll, HR, insurance and benefits solutions for small businesses, and a division of S&P Global Market Intelligence. increase. S&P Global (NYSE: SPGI), which in 2022 he will merge with IHS Markit, is a provider of information services and solutions to the global market. Focusing exclusively on small businesses, this monthly report provides an analysis of national employment and wage trends, as well as examining local, state, metropolitan area, and industry sector activity. Based on payroll data from nearly 350,000 of his Paychex customers, this powerful tool provides real-time insight into small business trends driving the U.S. economy.

About Paychecks
Paychex, Inc. (Nasdaq:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits and insurance services. Paychex enables business owners to focus on growing and managing their businesses by combining innovative Software-as-a-Service technology and mobility platforms with dedicated, personal services. Backed by his 50 years of industry expertise, Paychex currently serves over 730,000 payroll clients. May 31, 2022in the United States, and Europe, pays 1 in 12 private sector employees in America. Learn more about Paychex and stay connected by visiting www.paychex.com. twitter and LinkedIn.

About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts provides unparalleled insight and cutting-edge data and technology solutions to partner with our clients to broaden their horizons, operate with confidence, and make decisions with confidence. increase.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is a leading global provider of credit ratings, benchmarks, analytics and workflow solutions for the global capital, commodity and automotive markets. Through our full range of services, we help many of the world’s leading organizations navigate the economy and plan for tomorrow, today. For more information, please visit www.spglobal.com/marketintelligence.

media contact
Chris Muller
Paychecks Inc.
585-338-4346
[email protected]
@Paychex

Kate Smith
S&P Global Market Intelligence
+1 781-301-9311
[email protected]

Source Paychex, Inc.