Small businesses represent nearly 95 percent of all employers in the U.S. Therefore, the state of small business hiring serves as an indicator of the overall economy. While the pace of growth remains moderate, the June Paychex | IHS Small Business Jobs Index shows that small business hiring has improved over the last twelve months.
National Small Business Hiring Trends
The most recent Small Business Jobs Index grew 0.23 percent in the 12 months leading up to June. Although the Index decreased nationally for a second straight month in June, it remains near record highs.
Regional Small Business Hiring Trends
Regionally, the Mountain region had the highest gains at 1.77 percent. The mid-Atlantic region showed the weakest growth at -0.39 percent during the last twelve months.
State Small Business Hiring Trends
On a state level, Washington leads all states followed closely by Wisconsin, Indiana, and Texas. Arizona is the quickest growing state.
Metro Small Business Hiring Trends
Lastly, the metropolitan areas with the highest Index are Dallas, San Francisco, and Seattle. Metro areas with the lowest Index are Tampa Bay, Baltimore, and Washington D.C.
About the Small Business Jobs Index
The Paychex | IHS Small Business Jobs Index analyzes year-over-year worker count changes, trending the results to reveal movement in small business employment; an upward trend represents a strengthening job market, while a downward trend is a sign of slowdown. Analyzing same-store worker count changes from approximately 350,000 small businesses clearly indicates trends in the current employment situation. Indexing the results creates a point of reference to identify and track current and historical small business employment trends.