Wage Gains Continue for U.S. Workers

Hourly earnings growth accelerated for the eleventh consecutive month for workers of U.S. small businesses, according to the latest Paychex | IHS Markit Small Business Employment Watch. National small business job growth also remained strong, despite a slight moderation of 0.14 percent. The national jobs index for April was 101.14, an increase of 2.85 percent from a year ago. Average hourly earnings stood at $30.10, up 4.85 percent year-over-year.

“April saw a modest slowing in job gains as the labor market remains very tight,” said James Diffley, chief regional economist at IHS Markit.

“The state of small business employment remains strong, with wages increasing for 11 consecutive months and job growth near an eight-year high,” said Martin Mucci, Paychex CEO. “Texas continues to set the pace among states and metro markets. Texas led all states in small business employment growth and achieved record high hourly earnings growth in April, driven by Dallas’ eighth consecutive month as the top-performing metro in both categories.”

The ongoing economic boom in the state of Texas will be explored further in an upcoming two-part virtual roundtable, Paychex Spotlight on Texas. As part of the event, Paychex is bringing together subject matter experts, including both business and government officials in Texas, to provide up-to-date information on programs and opportunities to assist Texas business owners in managing and growing their businesses.

Speakers will include: John Scott, Texas Secretary of State; Bryan Daniel, Chairman of the Texas Workforce Commission; Geoffrey Tahuahua, President of the Associated Builders and Contractors (ABC) of Texas; and Cindy Ramos-Davidson, CEO of El Paso Hispanic Chamber of Commerce, among others.

In further detail, the April report showed:

At 101.14, the national index remains near its historic peak set in January 2022.
The South reclaimed the top spot for small business job growth by region, Texas was the highest-ranking state, and Dallas continued as the top metro for the eighth consecutive month.
Nationally, hourly earnings growth improved to 4.85 percent, its eleventh consecutive increase.
Annual weekly earnings growth grew to above four percent, the second consecutive increase.
The West and South lead regions with hourly earnings growth above five percent.
Ohio and North Carolina have the highest rates of hourly earnings growth, both above six percent.
Leisure and hospitality leads the industry sectors in both small business job growth and hourly earnings growth by a significant margin.

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