Paychex Small Business Jobs Index Hits 99.34, Weekly Earnings Growth Jumps to 2.98%
PAYX•The Paychex Small Business Jobs Index rose by 0.18 points to 99.34 in May, marking its highest level of 2026 and the first three-month consecutive gain since February 2023. Weekly earnings growth climbed to 2.98%—the highest since January 2024—and weekly hours worked increased 0.12% for the third straight month.
1. May Index Performance
In May, the Paychex Small Business Jobs Index reached 99.34 after a 0.18-point rise, marking the third straight monthly improvement and its strongest reading in 2026. This consecutive uptick is the first since February 2023, indicating sustained hiring momentum among U.S. small businesses with fewer than 50 employees.
2. Weekly Earnings and Hours Trends
Weekly earnings growth climbed to 2.98% in May, the highest level since January 2024, while weekly hours worked increased 0.12% for the third consecutive month. Hourly earnings growth held steady at 2.73%, reflecting continued wage pressures and stable compensation trends across small business workers.
3. Regional and Sector Highlights
Fourteen of the 20 largest states saw small business job growth gains, led by Tennessee’s 1.62-point jump to 100.87, and 15 of the top 20 metros recorded increases, with Phoenix reclaiming the top spot at 100.95. Education and Health Services led sectors at 100.37, while Manufacturing posted the strongest one-, three-, and 12-month gains.
