"There was little change in August, signifying the index's dip below 100 in July was not a fluke," said James Diffley, chief regional economist at IHS Markit. "Earnings continued to accelerate, with the growth rate now up 3.00 percent from a year ago."
"In reaching 3.00 percent, wage growth hit an important milestone this month," said Martin Mucci, Paychex president and CEO. "The combination of steadily rising wages and relatively consistent job growth are indicators of a healthy small business sector, especially in a year when small business owners are uncertain about potential policy changes and their business implications."
National Jobs Index
- At 99.96, the national index declined for the sixth consecutive month and is 0.74 percent lower than a year ago.
- Down 0.38 percent during the past quarter, the month-to-month decreases are getting smaller as the national index is leveling off.
- At $25.98, hourly earnings continue to gain momentum as year-over-year growth reached 3.00 percent in August.
- At 3.27 percent, the three-month annualized growth rate remains ahead of the annual rate, slowing slightly from a high of 3.53 percent in May.
- Declining 0.19 percent from July, the Northeast had the biggest slowdown among regions, with most of the decline occurring in the Middle Atlantic.
- The Midwest has the best one-month and 12-month growth rates and is the only region to average stronger employment growth in 2017 year-to-date than during 2016.
- Hourly earnings in the West grew 3.65 percent year-over-year, best among regions, followed by 2.97 percent growth in the Northeast.
- With positive annual growth in weekly hours worked, the Midwest and Northeast both have weekly earnings growth of more than three percent.
- Ranked first among states last November with an index level of 103.47, small business employment growth in Georgia has quickly decreased to 100.25 in August.
- Trending near the bottom of the state rankings throughout 2017, New York slowed 0.37 percent in August to 99.05, a seven-year low.
State Wage Report
- Arizona leads states with hourly earnings growth of 5.24 percent, followed by California and New York at 3.83 percent and 3.74 percent, respectively.
- Missouri ranked last among states in hourly earnings growth for the first five months of 2017, but has quickly picked up the pace to 2.67 percent, with a three-month annualized growth rate of more than four percent.
Metropolitan Jobs Index
- Dallas small business jobs growth increased 0.60 percent in August to 102.23, widening its lead as the top-ranked metro.
- Small business employment growth has steadily improved during the past year in Philadelphia, increasing 1.19 percent and moving up 13 spots to the second-ranked metro index at 101.29.
Metropolitan Wage Report
- The Southwestern metros of Phoenix, Riverside, and San Diego lead wage gains by a substantial margin, each above four percent year-over-year.
- At 3.11 percent last August, Chicago has seen hourly earnings growth decrease to 2.10 percent during the past year.
Industry Jobs Index
- Industry sectors showed little movement as employment growth conditions were relatively unchanged in August.
- Slowly declining, Financial Activities fell below 100 late in 2015 and is now below 99 for the second consecutive month.
Industry Wage Report
- Up 4.27 percent year-over-year, hourly earnings growth in Leisure and Hospitality has slowed during the past year, but remains one of the fastest paced sectors.
- Lagging all sectors for nearly three years, weekly earnings growth in Education and Health Services improved to 2.78 percent, just above Financial Activities at 2.75 percent.
