Small Business Job Growth Rebounds as the Year Begins; Wage Growth Also on the Rise
The Paychex | IHS Markit Small Business Employment Watch started the year with an increase in small business job growth and wages in January. The Small Business Jobs Index stands at 99.88, a 0.18 percent increase over December. The jobs growth rate remains below last January’s level by 0.74 percent. Hourly earnings have grown $0.72 in the past year to $26.38. January’s 12-month wages growth rate of 2.81 percent marks an improvement from 2.78 percent in December.
“Small business job growth improved 0.18 percent in January, ending a string of ten straight declines,” said James Diffley, chief regional economist at IHS Markit.
“After an extended period of uncertainty, the passing of federal tax reform at the end of last year offered clarity to business owners on the immediate future of U.S. tax policy,” said Martin Mucci, Paychex president and CEO. “While it’s still too early to see the impacts of tax reform on net pay, we’ll be keeping a close eye on this in the weeks ahead.”