As investors wait for the US Job Report to be released, the ever important Paychex IHS Small Business Jobs Index reported an August job rise of 0.02 percent from July. This is “in line with the year-to-date average for 2016.”
The biggest takeaway is a drop in the rate of small businesses job growth due to the upcoming elections. Small businesses are showing caution as they wait for a new President, and consider how to deal with changes in minimum wage, healthcare costs, and overtime rules.
A change in regional growth was displayed as well with the East Coast gaining an increase in job growth rate while the West Coast dropped a bit. "Paychex and IHS found little change in industry activity, after small business jobs growth eased in eight of the nine industries the index tracks the previous month. Business activities showed the best gain, rising 0.23 percent from the previous month.“
All in all not surprising news for the month of August. Expect numbers to stay consist until after November.