U.S. Small Business Employment Growth Accelerates in April
Event summary
- The Paychex Small Business Jobs Index rose 0.35 percentage points in April to 99.16, the largest one-month increase since February 2025.
- Hourly earnings growth remained steady at 2.71% for the 18th consecutive month.
- Weekly hours worked growth was positive for the second consecutive month at 0.18%.
- Construction sector saw the largest one-month gain in jobs index at 0.64 percentage points.
The big picture
The latest Paychex Small Business Employment Watch data indicates resilience in the small business sector, with consecutive months of job growth and positive weekly hours worked. This trend contrasts with broader economic uncertainty, suggesting that small businesses are adapting to challenges such as tax cuts and macroeconomic pressures. The construction sector's strong performance highlights regional variations in recovery and growth potential.
What we're watching
- Sustainability of Growth
- Whether the consecutive gains in employment and weekly hours worked can be sustained amid ongoing economic uncertainty.
- Regional Disparities
- How regional differences in job growth, particularly the strong performance in the Midwest, will evolve.
- Wage Pressure
- The pace at which hourly earnings growth may accelerate, given the recent increase in weekly earnings growth.
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