legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Job and Wage Growth Trends for Small Businesses in 2026

Overview

On February 3, 2026, Paychex released its Small Business Employment Watch, providing valuable insight into the job and wage growth trends within the U.S. small business sector. The report shows that, as the new year begins, these trends have remained remarkably consistent compared to previous years. The data reflects the experiences of Paychex clients with fewer than 50 employees, and interestingly, the Small Business Jobs Index saw a slight uptick of 0.04 percentage points, reaching 99.30 for January. Furthermore, hourly earnings growth has stabilized since July 2025, resting at 2.68%.

“As we enter 2026, the pace of employment and wage growth for America’s small businesses remains on a similar path that we saw in 2025,” commented John Gibson, the President and CEO of Paychex. This statement underscores a steady expansion of the economy, which is being observed without substantial inflationary pressures stemming from wages. He went on to highlight several ongoing challenges that small businesses face, including a scarcity of skilled labor and soaring healthcare expenses.

Significant Job Index and Wage Data Insights

The latest report brings to light some crucial highlights from the data that can significantly impact small businesses:

1. National Jobs Index: The national jobs index has increased to 99.30, representing a rise of 0.04 percentage points since December 2025.

2. Hourly Earnings Growth: The growth in hourly wages has remained below three percent since November 2024, with January’s growth recorded at 2.68%.

3. Weekly Earnings Growth: The weekly earnings growth decelerated to 2.53% this January. Also, the one-month annualized weekly earnings growth of 1.62% has been notably under two percent for three consecutive months. This trend echoes the previous three-month period starting from December 2020.

4. Top-Performing Regions: For the 20th consecutive month, the Midwest has continued to excel as the leading region in small business job growth.

5. Leading Sectors: The Education and Health Services sectors (index score: 100.57) have maintained significant growth in small business job creation for almost five years continuously.

About the Paychex Small Business Employment Watch

Since its inception in 2014, the Paychex Small Business Employment Watch has provided a reliable overview of employment trends, specifically for small businesses that employ fewer than 50 workers. The associated website features interactive charts and offers historical data regarding both the jobs index and wage data. Monthly alerts with the latest insights can also be subscribed to via the Bloomberg Terminals.

Information regarding the professions included in this industry analysis can be sourced from the Bureau of Labor Statistics website.

About Paychex

Paychex, Inc. (Nasdaq: PAYX) is a leader in digital HR solutions, redefining how organizations address the diverse needs of today’s workforce. They offer an extensive range of Human Capital Management (HCM) solutions for businesses of varying sizes. As an employer of approximately one out of every eleven private sector workers in the U.S. and Europe, Paychex aims to assist its clientele—around 800,000 customers—in overcoming challenges, including complex employment laws and burgeoning labor regulations. To explore more about their offerings, visit paychex.com.

How AI legalese decoder Can Assist

Navigating the complexities of labor laws and compliance can often prove challenging for small business owners. This is where tools like the AI legalese decoder come into play. By transforming intricate legal jargon into plain language, the AI legalese decoder can help entrepreneurs and HR professionals better understand the legal ramifications of employment laws, employee rights, benefits, and obligations. As Paychex seeks to empower small businesses, integrating innovative solutions like the AI legalese decoder can enhance clarity around compliance matters—ultimately saving time and reducing potential legal risks.

Media Contacts

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

Erin McAward
Account Director
ICR, Inc.
Email: [email protected]

Source

This report was sourced from Paychex, detailing the latest employment statistics and trends pertinent to small businesses in the U.S.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link