Small-business hiring in March fell to the lowest point in over seven years, while hourly earnings grew steadily, a report from human resources firm Paychex said Tuesday.
The Small Business Jobs Index decreased 0.12 percent from last month and 1.07 percent from a year earlier. Small-business wages continued to rise, reaching a 2.66 percent (69 cents per hour) annual growth rate in March, Paychex said.
(Source: Paychex)
"Small business job growth slowed slightly yet again, to its lowest point in more than seven years," James Diffley, chief regional economist at IHS Markit, said in a statement accompanying the report. "This could be the beginning of accelerating wage growth to attract more employees."
Paychex said national hourly earnings in March were $26.48.
The Bureau of Labor Statistics reported last month that nonfarm payrolls grew more than expected, but the closely watched wage number continues to steadily decline this year.
(Source: Paychex)
Tennessee returned to its previous spot as the top-ranked state for small-business job growth, the Paychex report said, while Arizona ranks first in annual hourly earnings growth. Denver passed Seattle as the country's top metro area for small-business jobs, Paychex said.
The Paychex report comes three days before the BLS releases its closely watched employment data for March.