Paychex | IHS Small Business Jobs Index Shows Steady Employment Growth
Rochester, N.Y. (May 3, 2016) – The Paychex | IHS Small Business Jobs Index was up modestly in April, increasing to 100.77 compared to 100.74 in March. Following the strong 0.28 percent one-month gain in January, the national index has increased further during the past three months, by 0.12 percent. At 101.87, the Mountain region continues as the leading regional index. Washington expanded its performance as the top state by moving to an index level above 104, while Seattle again ranks as the top metro area for small business job growth. Other Services (except Public Administration)*, as defined by the Bureau of Labor Statistics, ranks as the top industry sector.
"At 100.77, the Paychex | IHS Small Business Jobs Index held steady once again in April as employment continues to expand at a consistent rate," said James Diffley, chief regional economist at IHS.
"With consistent results during the past two months, and the national index representing solid small business job growth, there is greater stability in the current index level than at any other point in time during the past 10 years," said Martin Mucci, president and CEO of Paychex.
The April 2016 Paychex | IHS Small Business Jobs Index
The Paychex | IHS Small Business Jobs Index was virtually unchanged from the previous month. Through the first four months in 2016, the Paychex | IHS Small Business Jobs Index has increased 0.40 percent, from 100.37 at the end of 2015 to 100.77 in April 2016. Moreover, the pace of small business employment growth is only 0.48 percent slower this April compared to the national index peak two years ago in April 2014. The continued index level above 100 signals consistent gains in small business employment.
There was little movement among regions in April as Mountain remained the top index, gaining 0.13 percent from the previous month. Both under 100 at this time last year, the Middle Atlantic and New England regions in the northeast boast the best 12-month growth rates at 0.77 percent and 0.57 percent, respectively. The Middle Atlantic has increased 0.74 percent in 2016 and has moved up from last place at the end of 2015 to sixth place among regions. West North Central is the only region below 100, likely due to the struggling energy sector.
Note: Percentages displayed in the regional heat map reflect 12-month changes.
Washington jumped above 104 with another sizable increase in April as it remains the top-ranked state index. Ranked third among states, North Carolina saw small business employment conditions continue to improve as its index is up 1.72 percent so far in 2016. Up 2.29 percent from last April, New Jersey has the best 12-month growth rate among states as its index is trending near a three-year high. Though the state’s total employment situation has improved this year, Illinois has fallen to the bottom of the state ranking with its fifth drop in the last six months and the largest year-over-year decline, -1.82 percent.
Note: Analysis is provided for the 20 largest states based on U.S. population. The chart's dark blue bars reflect the index level and the light blue diamonds reflect the 12-month change.
The two top-ranked metros, Seattle and Dallas, are on diverging paths. Surging to 104.64, Seattle extended its lead with the best one-month gain among states at 0.61 percent. In contrast, Dallas fell sharply again in April as the rapid pace of employment growth set in 2015 has fallen quickly in 2016. Moving up several spots to third place among metros, Atlanta gained 0.47 percent from the previous month, bringing its index to 102.08. Small business job growth strengthened in the Washington metro for the seventh consecutive month, up 0.23 percent from March to April and 1.20 percent since September 2015.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population. The chart's dark blue bars reflect the index level and the light blue diamonds reflect the 12-month change.
The industries showed little movement from the previous month, with Leisure and Hospitality posting the strongest month, up 0.24 percent. Construction had the lowest one-month growth rate at -0.15 percent, but employment growth in that sector remains strong with an index level above 102. Education and Health Services maintained its solid start to 2016 as its index ticked up slightly to 101.16. Besides the top-ranked Other Services (except Public Administration) industry, Education and Health Services is the only other industry to show a positive year-over-year growth rate, 0.44 percent. At 98.84, Manufacturing is down 0.63 percent during the last quarter and 1.14 percent during the last year, worst among industry sectors.
Note: Analysis is provided for eight major industry sectors. The chart's dark blue bars reflect the index level and the light blue diamonds reflect the 12-month change.
For more information about the Paychex | IHS Small Business Jobs Index, visit the website. Plus, view and download the April 2016 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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