Paychex | IHS Small Business Jobs Index Indicates Summer of Stable Employment Growth
Rochester, N.Y. (August 4, 2015) – For the second straight month, the Paychex | IHS Small Business Jobs Index was relatively unchanged, increasing slightly from 100.63 in June to 100.64 in July. The national index has seen little movement in recent months, essentially remaining flat from May to July. Still trailing employment growth seen in 2014, the index was down 0.46 percent from the previous July. The East North Central region continues as the highest-ranked regional index. Washington maintained its lead among states, and for the 10th straight month, Dallas ranked number one among metro areas for employment growth with an index level surpassing 105.
"The Paychex | IHS Small Business Jobs Index indicates job gains have been steady in 2015 as the July reading of 100.64 is almost identical to May and June, as well as the beginning of the year in January (100.65)," said James Diffley, chief regional economist at IHS.
"The index data from July appears to be consistent with what the government reported last week, that the economy is experiencing slow, steady growth," said Martin Mucci, president and CEO of Paychex.
The July 2015 Paychex | IHS Small Business Jobs Index
Stability is apparent this summer, and this year, in contrast to the volatility of the preceding year. Up 0.02 percent in July, the first reading of the third quarter signals consistent job growth. While the national index has remained relatively flat in 2015, the level has been over 100 for nearly four years, since September 2011. Seven of the nine regions increased the rate of employment growth in July.
At 101.84, the East North Central has the highest Index in July. Looking at the 3-month growth rate, Mountain led all regions, increasing 0.54 percent, while the two least populous regions, West North Central and East South Central, decreased 1.33 percent and 0.98 percent respectively. Pacific gained 0.12 percent in July and moved up to the third ranked regional index at 101.43.
Note: Percentages displayed in the regional heat map reflect 12-month changes.
Washington leads all states with an index level above 103, with Wisconsin, Michigan, and Texas all above 102. According to BLS data, Michigan is adding jobs at a faster pace this year than all states east of the Mississippi. Despite a promising start to 2015, Virginia fell sharply in June, 1.04 percent, and again in July, 0.66 percent. Wisconsin and Tennessee scored the largest one-month gains, increasing 0.51 percent. Tennessee's index increase aligns well with BLS data that shows Tennessee among the leaders in overall job growth for the second quarter.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Texas is a tale of two cities. The Dallas index surged over 105, far outdistancing all other metros, while Houston fell below 100 in the midst of oil and gas retrenchment. According to the BLS, total job growth for Texas has fallen from near the top to among the middle of all states. Miami jumped 0.60 percent in July to 101.28, an eight-year high. Washington dropped 0.68 percent and is the only metro with an index below 98.
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 June 2015 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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