Small business job growth across the United States remained consistent in November, with the Paychex Small Business Employment Watch showing an index of 99.91 for the month.
Throughout 2024, the index averaged a steady 100.25, reflecting modest employment growth in the small business sector. While job growth has held steady, wage growth shows slower increases, with hourly earnings rising by 2.97% and weekly earnings growing by 2.84%—below the 3% threshold for the fourth and tenth consecutive months, respectively.
Paychex President and CEO John Gibson highlighted that small businesses show workforce resilience. According to November’s data from 350,000 Paychex customers, employment growth remains stable while wage growth becomes more manageable. He noted the optimism and strength of small businesses as they face the new year despite ongoing challenges.
Moreover, the November data also signaled growth in specific regions, partly driven by recovery efforts following Hurricanes Helene and Milton. In Florida, construction job growth surged by 2.55 percentage points, reaching an index of 99.95. This uptick directly resulted from rebuilding efforts, particularly in areas affected by the hurricanes.
Similarly, North Carolina rebounded in one-month annualized growth, particularly in storm-implemented sectors.
Gibson noted that the increase in construction jobs in Florida and North Carolina and a notable rise in Georgia are part of the broader recovery trend. “We can see an increase in construction jobs as North Carolina and Florida recover from the impacts of Hurricanes Helene and Milton,” he said. Georgia is experiencing a surge in construction jobs as crews grow their workforce to support rebuilding efforts in neighboring states. This trend is likely to persist as recovery initiatives move forward.
State and Metro Job Growth Highlights
Texas led the nation in job growth in November, with its jobs index climbing 1.22 percentage points to 101.60. The state’s major metros, Dallas (101.07) and Houston (100.94) ranked first and second for job growth among U.S. cities. Meanwhile, the Midwest region (100.62) remained the top region for small business employment growth for the sixth consecutive month.
In terms of wage growth, Tennessee saw the highest increase in hourly earnings, with a rise of 3.98%, marking the first time the state has ranked first in this category in over a decade. Tampa, Florida, also saw a significant surge in hourly earnings growth, jumping to 4.84% as part of the regional recovery.
Overall, the Paychex Small Business Employment Watch highlights the steady growth and resilience of the U.S. small business sector, with specific regions benefitting from recovery efforts post-hurricane and a general trend of manageable wage growth.
