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Paychex | IHS Small Business Jobs Index Signals Improvement in Employment Conditions for First Six Months of 2014

Rochester, N.Y. (July 1, 2014) – The Paychex | IHS Small Business Jobs Index grew 0.23 percent in the 12 months leading up to June. Although the national index decreased for a second straight month to 101.07, it remains near its record high. Washington again leads the index among the states, while Arizona continues to show strong improvement in small business employment growth. Dallas ranked as June's top performing metro area, surpassing San Francisco, Seattle, and Houston.

"Though the pace of gains remains moderate, the Paychex | IHS Small Business Jobs Index shows that payroll conditions have clearly improved this year for the country's small businesses," said James Diffley, chief regional economist at IHS.

"With the first six months of the year behind us, we continue to see a positive trend in small business employment growth," said Martin Mucci, president and CEO of Paychex. "Even though the growth rate has slowed slightly over the past two months, the consistent growth in key regions, states, and metro areas is an encouraging sign."

The June 2014 Paychex | IHS Small Business Jobs Index

National Index

National Index

Although the Paychex | IHS Small Business Jobs Index nudged down again in June, to its lowest level since January, the index remained over 101 for the sixth consecutive month. The 101.13 average for the first half of 2014 compares favorably to the 100.71 average for the last six months of 2013.

National Index Graph

Regional Employment

The Mountain region continues to lead in year-over-year gains at 1.77 percent, while the Middle Atlantic region once again showed the weakest growth, declining 0.39 percent during the past 12 months through June. After falling four out of the five months to begin 2014, the East South Central region had the best 1-month growth rate, advancing 0.41 percent in June.

Regional Heatmap plus legend

State Employment

Washington leads all states in the Small Business Jobs Index at 103.24, with Wisconsin, Indiana, and Texas also above 102 in June. With a 1-month growth rate of 1.02 percent, the Indiana index jumped seven spots to the number three ranked state. Growing quickly, Arizona small business employment conditions advanced further in June, increasing 0.58 percent during the past month and 2.87 percent over the past year. At 101.06, the Arizona index surged to its highest level since early 2007.

State Chart

Metropolitan Employment

At 104.02, Dallas topped all metros in the Small Business Jobs Index in June as the 1-month growth rate spiked 1.07 percent. San Francisco and Seattle rounded out the top three with levels above 103. For the third consecutive month, Tampa Bay, Baltimore, and Washington were the only metro indices below 100.

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 June 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 solutions 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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