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Paychex | IHS Small Business Jobs Index Shows Slight Decline in November, Yet Remains Above Prior Year Level

Rochester, N.Y. (December 2, 2014) – While the Paychex | IHS Small Business Jobs Index grew 0.07 percent in the past 12 months, the national index declined 0.11 percent in November, coming in at 100.73. Despite maintaining momentum in October, the national index has decreased by 0.25 percent over the past three months as strong employment growth conditions have weakened slightly. Small business job growth in the Central regions has kept the West North Central region at the top of the regional index for the second straight month. With strong 12-month growth rates, Washington and Dallas continue to lead the states and metro areas, respectively.

"The Paychex | IHS Small Business Jobs Index declined in November, giving up the last of its 2014 gains," said James Diffley, chief regional economist at IHS. "With an index level of 100.73, small business employment continues to grow, but at a moderate pace, reflecting levels seen since 2012."

"Even though the national index shows small business employment growing at a moderate pace when compared to earlier this year, the continued strong performance among certain regions, states, and metro areas gives us reason for optimism," said Martin Mucci, president and CEO of Paychex.

The November 2014 Paychex | IHS Small Business Jobs Index

National Index

National Index

The Paychex | IHS Small Business Jobs Index fell to 100.73, its lowest level since November 2013. After a very strong start to 2014, the November decline, though small, is the fifth of the past seven months. The 12-month growth rate stands at 0.07 percent, marginally ahead of where it was a year ago.

National Index Graph

Regional Employment

The Central regions advanced during the past year while the Coastal regions retreated, leaving the national index flat. Despite the largest 12-month decline, the Pacific region remains in positive territory. Since peaking in August 2014 at 102.14, the Mountain region has fallen significantly over the past three months by 1.36 percent.

Regional Heatmap plus legend

State Employment

California had one of the biggest declines in the past 12-months, falling 0.92 percent. However, the state’s index remains over 101 as small business employment accelerated in 2013. Overall, the California economy has grown strongly this year, ranking 15th in employment, according to the Bureau of Labor Statistics. New Jersey, Virginia, and Massachusetts are the only states with index levels below 100 in November.

State Chart
Note: Analysis is provided for the 20 largest states based on U.S. population.

Metropolitan Employment

Dallas, Houston, and Seattle all remain above 103 with employment growth rates gaining more than one percent over the past year. Minneapolis has steadily risen to the fourth highest metro index with a strong 1.91 percent 12-month growth rate.

Metro Chart
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.

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 October 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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