Small Business

Small business jobs growth slow and steady in July

Paychex Small Biz Index: Slow, steady growth

The small business sector continued to see slow but steady jobs growth in July, which seems to mirror the second-quarter gross domestic product data released by the government last week, Paychex CEO Marty Mucci said Tuesday.

For the second straight month, the Paychex-IHS Small Business Jobs Index was relatively unchanged, up slightly to 100.64 in July from 100.63 a month earlier.

The national index has seen little movement in recent months, essentially remaining flat from May to July. The region from Wisconsin through Ohio continued as the highest-ranked regional index.

"Most of the regions showed improvement. The central region [was] still the strongest. But the mountain region [was] really picking up over the last three months," Mucci told CNBC's "Squawk Box." "I think this is [as] high-tech jobs continue to prosper there."

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State employment trend

Washington maintained its lead among states for the 10th straight month, followed by Wisconsin and Michigan. At the bottom in descending order were Massachusetts, New Jersey and Virginia.

Metropolitan employment trend

Dallas ranked number one among metro areas for small business employment growth with an index level surpassing 105, while Houston fell below 100.

"In fact, Texas is the tale of two cities," Mucci said. "Dallas very strong ... and Houston dropping with jobs around the oil industry slowing down," coinciding with the slump in crude prices.

The overall index is based on aggregated data from approximately 350,000 small businesses with fewer than 50 workers across the United States. "It makes up 95 percent of all businesses in the U.S.," Mucci said.