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November

100.38

-0.04% 12-month change

Paychex | IHS Small Business Jobs Index Growth Slowed in May, Yet Remains Near Record High

Rochester, N.Y. (June 3, 2014) – The Paychex | IHS Small Business Jobs Index grew 0.05 percent in the 12 months leading up to May. Although the national index decreased to 101.15 from April to May, the pace of small business job growth remained positive. While Washington and San Francisco continue to lead the index among the states and metro areas measured, Arizona had the greatest improvement among the states, driven by employment growth in Phoenix.

"Though the index gave up its April gains, small business hiring conditions remain strong," said James Diffley, chief regional economist at IHS. "Indeed, it has been the best quarter in a decade."

"While small businesses grew at a slower rate in May than they did in April, it's encouraging to see the growth trend continue," said Martin Mucci, president and CEO of Paychex. "With real estate markets rebounding in the Southwest and increases in tech jobs in the Pacific Northwest, we're hopeful that the slow, steady growth we've been seeing will continue to advance."

The May 2014 Paychex | IHS Small Business Jobs Index

National Index

National Index

After significant index gains across the U.S. in April, the pace of small business job growth remained positive, slowing slightly in May.

National Index Graph

Regional Employment

Buoyed by the residential real estate rebound, the Mountain region remained the strongest region, with the best 1-month and 12-month small business employment growth rates again in May. Nevada, Utah, and Colorado are among the four fastest-growing states in 2014. The Middle Atlantic region remains weak as New Jersey now has the highest foreclosure rate in the nation.

Regional Heatmap plus legend

State Employment

Small business employment is surging in Arizona, which had the best 12-month growth rate, increasing 1.48 percent. With a 1-month growth rate of 0.25 percent, Florida is at last rebounding as its real estate market begins to improve.

State Chart

Metropolitan Employment

Up 0.45 percent from last month, small business employment conditions in Phoenix are bouncing back. However, San Francisco and Seattle remain the strongest metro indices, with tech job gains as the primary driver.

Metro Chart

Launched on April 1, the monthly index from Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small-to medium-sized businesses, and IHS, Inc., a leading global source of critical information and insight, provides analysis of small business employment trends across the U.S.

The index analyzes same-store, year-over-year worker count changes to identify and track small business employment trends using real small business payroll data from the Paychex client base. The index is based on aggregated data from approximately 350,000 small businesses with fewer than 50 workers across the United States, one of the largest sample sizes of any small business index or report in the country, and provides timely, accurate insight into national, regional, state, and metro employment activity. The index uses a base year of 2004, a period of expansion before the start of the economic downturn. When the index trends up it is a sign of a strengthening job market, and when it trends down it is a sign of a slowdown.

For more information about the Paychex | IHS Small Business Jobs Index, please visit the jobs index website. Plus, view and download the May 2014 Paychex | IHS Small Business Jobs Index infographic. Or, sign up to receive monthly alerts on the Paychex | IHS Small Business Jobs Index.

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

About the Paychex | IHS Small Business Jobs Index

The Paychex | IHS Small Business Jobs Index 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 solutions, providing analysis of small business employment trends across the U.S.

The index analyzes same-store, year-over-year worker count changes to identify and track small business employment trends using real small business payroll data from the Paychex client base. The index is based on aggregated data from approximately 350,000 small businesses with fewer than 50 workers across the United States, one of the largest sample sizes of any small business index or report in the country, and provides timely, accurate insight into national, regional, state, metro, and industry employment activity.

About Paychex

Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, 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 45 years of industry expertise, Paychex serves approximately 605,000 payroll clients across more than 100 locations 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 expertise 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 key business and government customers, including 85 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. All other company and product names may be trademarks of their respective owners © 2016 IHS Markit Ltd. All rights reserved.

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