Paychex | IHS Small Business Jobs Index Shows Employment Growth Slowing for Small Businesses in December
Rochester, N.Y. (January 6, 2015) – The Paychex | IHS Small Business Jobs Index declined 0.18 percent in the past 12 months, bringing the national index to 100.56 in December. Although the pace of small business employment growth is slowing, an index level above 100 indicates continued positive employment gains. With the strongest 12-month growth rate, the West North Central region maintained its lead among the regions. At 102.64, Washington continued to be the top-performing state for the third consecutive month. Dallas, meanwhile, held the top position among metro areas, despite a .64 percent one-month decline.
"It appears that small businesses are not enjoying the same acceleration as the general economy, as the Paychex | IHS Small Business Jobs Index continued its downward trend through year-end," said James Diffley, chief regional economist at IHS. "At 100.56, the national index is 0.18 percent below December 2013."
"With the index maintaining a level above 100, we're still seeing small business employment growth," said Martin Mucci, president and CEO of Paychex. "But the growth rate does appear to be moderating. As we begin the New Year, it will be interesting to see the impact falling energy prices and the power shift in Washington have on the country's small businesses in the months ahead."
The December 2014 Paychex | IHS Small Business Jobs Index
Small business employment growth, while still positive, has seen the rate of gains decrease 0.28 percent over the past three months. At 100.56, small businesses continue to add jobs, but at a slower pace.
The West North Central region remained the highest at 102.33 and had the best 12-month growth rate at 1.01 percent. Although the Pacific region had the weakest 12-month growth rate at -0.87 percent, the index level has been at or above 101 for more than two years, indicating strong long-term employment gains. After falling below 100 last month for the first time since 2011, the Middle Atlantic region decreased again in December. Joining both the Middle and South Atlantic regions, New England also fell below 100.
Washington ended 2014 with the highest state index at 102.64, while Texas, Wisconsin, and Michigan also exceeded 102. North Carolina and Georgia led all states in 1-month growth rates for December, while Georgia had the best 12-month growth rate as well. With an index level below 98, New Jersey and Virginia are the worst ranked states and, according to the BLS, have been in the bottom five among states in overall employment gains.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Despite a sharp decline in December, Dallas continues to lead metro index levels at 102.84. Leading in year-over-year gains at 2.23 percent, Minneapolis has steadily risen to the second ranked metro index. Chicago spiked 0.55 percent in December bringing its index level to 101.05, while Atlanta and Detroit also had solid one-month gains. Tampa Bay and Washington metros fell below 99 in December and ended 2014 the lowest ranked metro indices.
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 December 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.
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.
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.
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