Paychex | IHS Small Business Jobs Index Growth Slowed in May, Yet Remains Near Record High
Tuesday, June 3, 2014
The Paychex | IHS Small Business Jobs Index grew 0.05 percent in
the 12 months leading up to May. Although the national index decreased
to 101.15 from April to May, the pace of small business job growth
remained positive. While Washington and San Francisco continue to lead
the index among the states and metro areas measured, Arizona had the
greatest improvement among the states, driven by employment growth in
“Though the index gave up its April gains, small business hiring
conditions remain strong,” said James Diffley, chief regional economist
at IHS. “Indeed, it has been the best quarter in a decade.”
“While small businesses grew at a slower rate in May than they did in
April, it’s encouraging to see the growth trend continue,” said Martin
Mucci, president and CEO of Paychex. “With real estate markets
rebounding in the Southwest and increases in tech jobs in the Pacific
Northwest, we’re hopeful that the slow, steady growth we’ve been seeing
will continue to advance.”
The May 2014 Paychex | IHS Small Business Jobs Index
After significant index gains across the U.S. in April, the pace of
small business job growth remained positive, slowing slightly in May.
Buoyed by the residential real estate rebound, the Mountain region
remained the strongest region, with the best 1-month and 12-month small
business employment growth rates again in May. Nevada, Utah, and
Colorado are among the four fastest-growing states in 2014. The Middle
Atlantic region remains weak as New Jersey now has the highest
foreclosure rate in the nation.
State Employment Trend
Small business employment is surging in Arizona, which had the best
12-month growth rate, increasing 1.48 percent. With a 1-month growth
rate of 0.25 percent, Florida is at last rebounding as its real estate
market begins to improve.
Metropolitan Employment Trend
Up 0.45 percent from last month, small business employment conditions in
Phoenix are bouncing back. However, San Francisco and Seattle remain the
strongest metro indices, with tech job gains as the primary driver.
Launched on April 1, the monthly index from Paychex, Inc., a leading
provider of payroll, human resource, insurance, and benefits outsourcing
solutions for small-to medium-sized businesses, and IHS, Inc., a leading
global source of critical information and insight, provides analysis of
small business employment trends across the U.S.
The index analyzes same-store, year-over-year worker count
changes to identify and track small business employment trends using
real small business payroll data from the Paychex client base. The index
is based on aggregated data from approximately 350,000 small businesses
with fewer than 50 workers across the United States, one of the largest
sample sizes of any small business index or report in the country, and
provides timely, accurate insight into national, regional, state, and
metro employment activity. The index uses a base year of 2004, a period
of expansion before the start of the economic downturn. When the index
trends up it is a sign of a strengthening job market, and when it trends
down it is a sign of a slowdown.
For more information about the Paychex | IHS Small Business Jobs Index,
please visit the jobs index website.
Plus, view and download the May 2014 Paychex | IHS Small Business Jobs
up to receive monthly alerts on the Paychex | IHS Small Business
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human
resource, and benefits outsourcing solutions for small- to medium-sized
businesses. The company offers comprehensive payroll services, including
payroll processing, payroll tax administration, and employee pay
services, including direct deposit, check signing, and Readychex®. Human
resource services include 401(k) plan recordkeeping, section 125 plans,
a professional employer organization, time and attendance solutions, and
other administrative services for business. A variety of business
insurance products, including group health and workers' compensation,
are made available through Paychex Insurance Agency, Inc. Paychex was
founded in 1971. With headquarters in Rochester, New York, the company
has more than 100 offices serving approximately 570,000 payroll clients
as of May 31, 2013. For more information about Paychex and our products,
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and
analytics in critical areas that shape today’s business landscape.
Businesses and governments in more than 165 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs more than 8,000
people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. Copyright ©
2014 IHS Inc. All rights reserved.
The Arizona Small Business Association was not involved in the creation of this content.