According to the Paychex / IHS Markit Small Business Employment Watch, small business employment increased slightly for the month of May. “Hourly earnings growth increased 2.59 percent year over year by $0.67 to $26.61. That was up 2.59 percent compared to last year, but the pace of annual wage growth was down from its peak of 2.96 percent in June 2017.” Paychex creates these numbers by compiling the research from IHS Markit, creating the Small Business Jobs Index which increased 0.07 percent to 99.60 in May.
Despite the employment numbers steadily increasing, wage growth did not match. It appears that wages are still not increasing as much as some predicted with the unemployment rate falling to under 4% last month. The idea is that with less people unemployment, potential employees with needed skills would see a wage increase as businesses compete for top talent.
The South and West seems to be the premier locations for jobs at the current moment With Texas and Arizona taking the top spots for job growth and annual earnings growth. We will see how these numbers hold up against a potential trade war brewing between America and multiple countries but for now, the economy is holding steady.