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Hourly Earnings Growth for Small Business Workers

Date: April 29, 2025, 08:30 AM

Overview of Current Employment Trends

In Rochester, N.Y.—Recent data from Paychex Small Business Employment Watch reveals that job growth in U.S. small businesses, specifically those with fewer than 50 employees, saw a slight uptick in April. The growth rate increased by 0.27 percentage points, resulting in a job index level of 100.02. Over the past year, the Small Business Jobs Index has averaged 99.99, signifying minimal fluctuations in the labor market.

Moreover, the hourly earnings growth for these small business workers has experienced a setback, dropping to 2.82%, marking the slowest growth rate since May 2021.

This report sheds light on the challenges faced by small business owners as they navigate a continually evolving economic landscape.

Remarks from Leadership

“Our April jobs data signals a persistent stability within the small business labor market as business owners thoughtfully approach workforce management amidst an ever-evolving macroeconomic environment,” stated John Gibson, President and CEO of Paychex. He emphasized the absence of recession indicators within the data, noting that many small business leaders are maintaining consistent workforce levels.

Navigating Uncertain Times

Gibson further added, “As businesses confront a myriad of ongoing challenges, our commitment to supporting their success remains unwavering. Our recent acquisition of Paycor introduces additional resources to empower organizations of every scale to adeptly manage their workforces during these unpredictable times.”

Key Data Highlights

Job Index and Wage Statistics

• Small Business Jobs Index: Increased by 0.27 points to 100.02 in April.
• Hourly Earnings Growth: Gradually declined to 2.82%, highlighting significant year-on-year changes.
• Weekly Hours Worked: A modest decline of 0.17%, despite an annualized growth rate of 2.62% over the past month.
• Regional Performance: All four regional job indexes recorded improvements in April, with the Midwest displaying the most substantial growth at 0.81 percentage points.

Noteworthy State Performances

• Ohio demonstrated a notable spike of 2.24 percentage points to an index level of 101.94, benefiting from robust job growth in the Trade, Transportation, and Utilities sectors.
• Minneapolis led the state rankings again with an index level of 102.35, reflecting sustained job gains.
• The Professional and Business Services sector improved significantly, registering a 0.82 percentage points increase to a jobs index level of 100.36.

Additional Insights

For further details about the Paychex Small Business Employment Watch, readers are encouraged to visit the official website and subscribe for monthly alerts.

About Paychex Small Business Employment Watch

The Paychex Small Business Employment Watch is published monthly by Paychex, Inc. and focuses solely on businesses with fewer than 50 employees. This monthly analysis provides invaluable insights into national employment and wage trends, with a granular examination of regional, state, and industry sector activities. Utilizing payroll data from approximately 350,000 Paychex clients, this report serves as a critical benchmark, offering real-time insights that influence the U.S. economy.

How AI legalese decoder Can Help

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About Paychex

Paychex, Inc. (Nasdaq: PAYX) stands as a leading innovator in human resources, offering comprehensive solutions tailored for modern workforce needs. Catering to nearly 800,000 clients across the U.S. and Europe, Paychex is committed to helping businesses succeed through a full array of HR advisory and employee solutions. For more insights, visit paychex.com.

For media inquiries, please reach out to:

• Tracy Volkmann, Manager, Public Relations, Paychex Inc.
  Phone: (585) 387-6705
  Email: [email protected]

• Emily Walsh, Account Executive, Highwire Public Relations
  Phone: (914) 815-8846
  Email: [email protected]

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