Both the Paychex and ADP small business indices which track employment and wage growth for small firms showed an increase in September. According to Accounting Today;
- The Paychex | IHS Markit Small Business Employment Watch “which the payroll provider compiles with the research firm IHS Markit, found hourly earnings increased 2.33 percent year-over-year, while job growth stayed relatively unchanged.”
- According to the payroll company ADP, private “sector employers added 230,000 jobs in September”
For Paychex, September’s numbers were consistent with August with a slight slowing of growth year over year. Hourly earnings increased for the first time in over a year by 61 cents while weekly earnings growth slowed. Employees are still making more money as “the number of weekly hours worked was up year-over-year for the 22nd month in a row.”
The top region of the country for employment growth was the South, while for wage growth it was the West. Texas ranked in the top spot among the states for job growth, while Arizona ranked in first place on wage growth.
When taking a look at job growth among business sizes;
- Small businesses added 56,000 jobs in September, including 35,000 at businesses with between one and 19 employees, and 21,000 at businesses with between 20 and 49 employees.
- Midsized businesses with between 50 and 499 employees gained 99,000 employees.
- Large businesses added 75,000 employees, including 26,000 at companies with between 500 and 999 employees,
From an industry stand point, the service sector “accounted for 184,000 of the jobs added in September, including 70,000 in professional and business services such as accounting and tax preparation.” Jobs related to franchises declined by 5,700.
Overall the numbers are looking positive with experts such as Mark Zandi, “chief economist at Moody’s Analytics, which compiles the monthly national employment report with ADP,” suggesting that if this numbers hold, America could see unemployment hit low 3% by the end of the decade.
“If the current pace of job growth is sustained, given all the fiscal stimulus in the next 12 to 18 months, we will see continued declines in unemployment and we’re likely going to be in the low 3’s on unemployment by the end of the decade, which is something we’ve never seen in peacetime,” said Zandi.