Paychex | IHS Small Business Jobs Index Continues Trend of Employment Growth for Small Businesses in October
While the Paychex | IHS Small Business Jobs Index grew 0.23 percent in the past 12 months, the national index remained even for October, coming in at 100.84. Showing no change, the rate of job creation seen in September was consistent through October. Though down 0.25 percent during the past three months, the national index is still in a position of strength, well above the baseline of 100. Employment growth in the Central regions put the West North Central region at the top of the regional index, while Washington took over the lead among the states, and Dallas reclaimed the top spot among metro areas.
“The Paychex | IHS Small Business Jobs Index held strong in October as employment growth maintained its momentum to start the fourth quarter,” said James Diffley, chief regional economist at IHS.
“The year-over-year trend of employment growth continues to be strong for small businesses, despite the index not showing a lot of movement in recent months,” said Martin Mucci, president and CEO of Paychex. “Even with the pace of employment varying since the index hit its record high in the spring, small business hiring continues to be stronger than the previous year.”
The October 2014 Paychex | IHS Small Business Jobs Index
The downturn seen in four of the past five months leveled off in October, as the pace of employment growth was unchanged from September. Though the national index remains at a low for 2014, the 12-month growth rate continues to trend positively at 0.23 percent.
The Central regions lead expansion; moving to the top of the regional index at 102.45, West North Central spiked 0.68 percent from September to October. Also, the West South Central region rebounded from a dip last month to exceed 102 again. Employment conditions in the Eastern regions lag, with New England declining the most in October and during the past year.
State Employment Trend
A strong October gain pushed Indiana into the fourth position in the state index. Despite a sharp decline in October, the Wisconsin index is still above 102, indicating small business activity is far brighter than other economic indicators in the state. The only state above 103, Washington, is showing strong short- and long-term employment growth. Both at an index level under 99, New Jersey and Virginia continue to lag severely.
Note: Analysis is provided for the 20 largest states based on U.S. population.
Metropolitan Employment Trend
Gaining 0.88 percent in October, Dallas surged to lead all metros, surpassing Seattle and Houston. Strong gains also propelled Minneapolis to 102.65, which had the lowest unemployment rate among large metros in September. Though overall economic activity appears strong in Boston, its small business index dropped to less than 100 in October. A large improvement in Washington still leaves it lowest among the metros, reflecting its overall sluggish economy this year.
Note: Analysis is provided for the 20 largest metro areas based on U.S. population.
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 October 2014 Paychex | IHS Small Business Jobs Index infographic. Or, sign up to receive monthly alerts on the Paychex | IHS Small Business Jobs Index.
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 580,000 payroll clients as of May 31, 2014. For more information about Paychex and our products, visit www.paychex.com.
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.
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