Small Business Hiring Moderates in October

Small business hiring in October has seen some moderation from the previous month, declining by 0.13% nationally to 94.32 according to an index report by Paychex and IHS Markit. October’s figures show a 3.89 decline from the same period last year. 

Since its initial drop in April, the national index has seen an average monthly growth of 0.06% decrease during the past two quarters.  

The Small Business Jobs Index also dipped again in October, coinciding with the recent surge in COVID-19 cases. While hourly earnings growth stood at 2.88% in October, weekly hours worked remained positive, up 0.38 percent from last year.

Small Business Hiring in October Moderates Slightly

Other findings from the report include :

• The South remains the top-ranked region for small business hiring. It has improved its pace of job growth for the second month in a row. Florida and Texas, the top two states for small business employment growth, both increased again in October and are the only states with indexes above 96.
• California declined most among states in October, 0.56 percent, and is now equal to New York (92.65) and above only Washington (91.20).
• In terms of wages, states in the NorthEast, New Jersey, Massachusetts, and Pennsylvania lead hourly earnings growth. They are the only states above four percent. 
• New York’s year-over-year weekly hours worked growth remains above one percent in October.
• Construction (97.77) continues to lead in hiring with financial services (97.12) coming in a close second. At the other end of the index, the leisure and hospitality (82.22) sector performed the least compared to other sectors.

The Small Business Jobs Index

The Index monitors performance in two areas: employment numbers and wages across the US. It provides insights into economic trends at the national, regional and local levels. The data comes from among 20 of the largest US states and seven major industries.

October’s figures come at the seven months mark since the CARES Act was passed. A recent survey of small business owners by Paychex indicates 44% of businesses support a second round of Paycheck Protection Program (PPP) loans.

Image: paychex.com