Small business hires dropped in June, but employees saw wages rise, Paychex survey shows
- Small business hiring fell in June, but wages continued to increase, Paychex says.
- The Small Business Jobs Index is at its lowest level since late 2011.
- "The decline in this month's index and modest growth in wages seem to reflect an unclear regulatory picture combined with a narrowing labor market," Paychex President and CEO Martin Mucci says.
Small business hiring fell in June for the fourth-straight month, but wages rose, a report by human resources firm Paychex said Wednesday.
The Small Business Jobs Index decreased 0.24 percent to 100.10 in June, its lowest level since late 2011. National hourly earnings for the month were $25.82, increasing 2.88 percent, or 72 cents, year over year.
"Over the past month we've seen continued uncertainty as it relates to legislative policies that stand to impact small businesses," said Martin Mucci, Paychex president and CEO. "The decline in this month's index and modest growth in wages seem to reflect an unclear regulatory picture combined with a narrowing labor market."
12-month trend of wages
Earlier this year, Mucci attributed the growth to President Donald Trump's pro-business agenda, including tax reform, regulation rollback and the potential for health-care reform.
Tennessee was the top-ranked state in small-business job growth, and Dallas was the top metro area for the third-straight month. Washington state and Arizona had the highest weekly earnings growth, up more than 4 percent.
The Paychex report comes a day before ADP's June report in the private sector, which was postponed due to the Fourth of July, and two days before the Bureau of Labor Statistics releases its closely watched employment data for June.