Paychex | IHS Small Business Jobs Index Shows Slight Increase in Small Business Employment Growth Heading into the Close of 2015
Rochester, N.Y. (December 1, 2015) – The Paychex | IHS Small Business Jobs Index increased in November, moving from 100.34 to 100.42, signaling modest gains in employment levels at small businesses across the U.S. The national index increased 0.08 percent from the previous month, but declined 0.31 percent from November 2014. The Mountain region was once again the top-performing regional index. Washington continued to lead states tracked by the index, followed by Texas and Florida. Dallas remained the top-ranked metro area by a wide margin. Other Services (except Public Administration)*, as defined by the Bureau of Labor Statistics, ranked as the top industry sector for small business employment growth, while Manufacturing is the lowest.
"Increasing 0.08 percent, the Paychex | IHS Small Business Jobs Index rebounded from its October decline," said James Diffley, chief regional economist at IHS. "At 100.42, the pace of employment growth is currently 0.42 percent faster than in the base period ten years ago."
"As small businesses prepare to end 2015, the index indicates they're hiring," said Martin Mucci, president and CEO of Paychex. "While the pace of job growth doesn't match the levels seen in 2014, small businesses continue to add employees at a pace above our base year."
The November 2015 Paychex | IHS Small Business Jobs Index
Aided by growth in the Middle Atlantic, the Paychex | IHS Small Business Jobs Index increased 0.08 percent from October to November. The national index has been over 100 for 50 consecutive months. The index is down -0.31 percent from last November. With one month remaining in 2015, job conditions have slowed just 0.14 percent, despite a downward trend for most of the year.
Essentially flat in November (-0.02 percent), Mountain remained the top region at 101.62. West South Central was the only other region above 101. With the lowest 12-month growth rate (-2.49 percent), job growth in the West North Central slowed for the eighth consecutive month as oil price deflation continues to take a toll on regional economies. After trending last among regions for several months, the Middle Atlantic jumped two spots with a large 0.48 percent gain from October to November. Middle Atlantic is the lone region with a positive 12-month growth rate.
Note: Percentages displayed in the regional heat map reflect 12-month changes.
Washington improved 0.45 percent to 103.20 and remained the top-ranked state index. At 100.58, New Jersey is up 1.53 percent from last month and 2.86 percent from last year, the best growth rates among states. Employment growth slowed in New Jersey in 2014, but has increased in 2015. Georgia fell 0.85 percent from October to November and is down 1.45 percent in the last quarter. With index levels near or above 102 since 2012 through last month, the sustained employment growth in Georgia has slowed quickly since hitting an eight-year high in February 2015.
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.
At 106.54 and up 2.35 percent year-over-year, Dallas continues to extend its lead as the top-ranked metro index. Seattle moved up 0.43 percent to 102.85 to distinguish itself as the second-ranked metro index. Falling to 99.76, Houston is down 3.84 percent over the past 12 months and is under 100 for the first time since 2010. Gaining 0.80 percent in November, New York City had its best one-month increase in nearly five years, 0.80 percent.
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.
Coming off a record high in October, Other Services (except Public Administration), which includes offerings as varied as repair and maintenance to personal and laundry services, fell slightly in November to 104.12, but continues to outpace all other industry sectors by a wide margin. Manufacturing remains the lowest-ranked industry, and its 12-month growth rate is also the lowest at -1.04 percent. Construction and Financial Activities had the lowest one-month growth rates in November, declining 0.11 percent.
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 November 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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