After the election of President Trump in 2016, countless surveys reported increasing small business optimism. Post-election research conducted by Paychex showed similar results. Slightly more than half of respondents (small business owners) felt confident to highly confident in their ability to grow under the Trump Administration and 37 percent expressed moderate confidence. But has that optimism translated to small business employment growth?
A recent report focused exclusively on small business has found wages from jobs at small businesses are going up nationally, but the amount of jobs is going down. The report by Paychex, a payroll, human resource, insurance and benefits outsourcing solutions provider for small-to medium-sized businesses, and IHS Markit, a provider of critical information, analytics and expertise, shows a Small Business Jobs Index at its lowest level since late 2011.
With tightening labor markets, job growth in small business has been declining for the last four months and the current level of the Small Business Jobs Index hasn't been so low since late 2011. This worrying trend was revealed in the "IHS Markit Small Business Employment Watch" released for the month of June by Paychex, an integrated HR solutions provider. "Over the past month we've seen continued uncertainty as it relates to legislative policies that stand to impact small businesses," explains Martin Mucci, president and CEO, Paychex. "The decline in this month's index and modest growth in wages seem to reflect an unclear regulatory picture combined with a narrowing labor market."
Small business hiring fell in June for the fourth-straight month, but wages rose, a report by human resources firm Paychex said Wednesday. The Small Business Jobs Index decreased 0.24 percent to 100.10 in June, its lowest level since late 2011. National hourly earnings for the month were $25.82, increasing 2.88 percent, or 72 cents, year over year.
Employment growth at small businesses declined for the fourth month in a row in June, according to payroll giant Paychex, but wages continued to rise.