According to Paychex, small businesses saw an increase in hiring and employee wages for the month of January. “The Paychex | IHS Markit Small Business Employment Watch, which Paychex compiles with the research firm IHS Markit” proved that their small business jobs index and job growth rate index both increased with the form seeing a 0.18% uptick and the later increasing by 0.74% from December to January. The result was that hourly “earnings grew $0.72 this past year to $26.38. January’s 12-month wage growth rate of 2.81 percent represents an improvement from December’s 2.78 percent.”
Tax reform has not played a roll in small business employment increase yet, but it is expected to help beginning in the second quarter.
The South led other regions of the country in employment growth, while the West ranked highest in terms of wage growth. Among states, Tennessee continued to lead in job growth, while Arizona remained in first place in terms of annual hourly earnings growth. Among metropolitan areas, Denver ranked in first place in small business job growth, while Phoenix led in small business wage growth.