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November

100.38

-0.04% 12-month change

January Shows Stronger Employment Growth Among Small Businesses, According to the Paychex | IHS Small Business Jobs Index

Rochester, N.Y. (February 3, 2015) – Following several months of slowing employment growth, the Paychex | IHS Small Business Jobs Index grew 0.09 percent in January, representing the strongest one-month gain since the national index peaked in April 2014. Year-over-year, however, the national index declined 0.38 percent. The West North Central region remained the top regional index despite having the worst one-month growth rate. Indiana jumped to the top-ranked state index and Dallas continued its hold on the top spot among metro areas.

"The Paychex | IHS Small Business Jobs Index began 2015 on an upswing, gaining 0.09 percent during January. Though still below 2014 levels, at 100.65, small business employment growth remains robust," said James Diffley, chief regional economist at IHS.

"Following several months of slower employment growth, it's encouraging to see small businesses start the New Year on a high note," said Martin Mucci, president and CEO of Paychex. "We're hopeful that this will be a positive trend small businesses continue to see throughout 2015."

The January 2015 Paychex | IHS Small Business Jobs Index

National Index

National Index

Although growth accelerated in January, the improvement has not reversed the downturn seen in the latter half of 2014. Still, fifteen of the twenty states analyzed showed positive movement in January. At this rate, small business employment is growing near the same pace seen during the last quarter of 2013.

National Index Graph

Regional Employment

At 101.83, the East North Central region jumped to the second ranked regional index with the best one-month growth rate for the second straight month. Despite having the worst one-month growth rate at -0.42 percent, the West North Central remains the top-performing regional index. The Atlantic regions both showed positive gains in January, yet remain below 100.

Regional Heatmap plus legend

State Employment

Indiana surged to the number one ranked state index in January. Though the surge will likely be unsustainable, Indiana did rank 15th in overall fourth quarter job growth as measured by the BLS. Boasting strong growth rates, the Georgia index is at its highest level since 2006. New Jersey remains the lowest ranked state index, lagging in small business and total jobs.

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

Metropolitan Employment

Rising to 103.55, Dallas recovered from December's one-month decline to hold its position as the top metro index. Houston, however, has lost momentum in the face of the oil price deflation, reporting a negative 12-month growth rate for the first time in nearly a year. Boston and New York City are trending below 100, with two of the worst 12-month growth rates among metro areas.

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 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.

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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