Small business in mountain states leads nation for job gains, says IHS-Paychex report
Thursday, June 05, 2014
Posted by: Rhette Baughman
For a third straight month, the Rocky Mountain states in May topped the nation for small-business job growth over the previous year, according to a monthly report from Colorado's IHS Inc. andPaychex Inc.
Small-business jobs in the mountain states grew by 1.41 percent in May from a year earlier, following April's 1.75 percent year-over-year increase and March's 1.62 percent gain, according to the latest Paychex-IHS Small Business Jobs Index, issued Tuesday.
The region includes Colorado as well as Arizona, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming.
The mountain region's growth far outstripped the "East North Central" states (Illinois, Wisconsin, Michigan, Indiana and Ohio), which came in at No. 2 with 0.59 percent small-business job growth, the report said.
On the other hand, the "Middle Atlantic" states of New York, New Jersey and Pennsylvania saw small-business jobs drop 0.69 percent over the one-year period, the greatest decline of any U.S. region.
The report comes from Douglas County-based IHS (NYSE: IHS), a global market information and insight provider, and Paychex (Nasdaq: PAYX), a provider of payroll, human resource, and benefits outsourcing services for small- to medium-sized businesses.
The Paychex-IHS Small Business Jobs Index was introduced in March.
The index compares "same-store" worker count changes at some 350,000 business with fewer than 50 workers that are clients of Paychex.
The report assigned a small-business index reading of 101.98 to the mountain states, meaning employment in the region is 101.98 percent higher than the pre-recession base year of 2004.
Nationally, small business hiring was up a scant 0.05 percent in May from a year earlier. The national index reading was 101.15.
"Small business hiring conditions remain strong" nationwide, said James Diffley, chief regional economist at IHS. "Indeed, it has been the best quarter in a decade."
Originally published at Denver Business Journals. Written by Mark Harden.