Paychex | IHS Small Business Jobs Index Indicates Employment Growth Rebound

ROCHESTER, NY--(Marketwired - July 05, 2016) -

• Small business job growth increases 0.21 percent in June, reversing May's decline
• South Atlantic claims top spot among regions, hitting record-level growth
• Washington remains top-ranked state for sixth consecutive month
• Seattle continues as top metro
• Construction industry has strongest gain in more than three years

The Paychex | IHS Small Business Jobs Index rebounded 0.21 percent in June, increasing to 100.81, reversing the May decline of 0.18 percent. The second quarter of 2016 saw an overall gain of 0.07 percent, despite significant movement in the index month-to-month. The change in the pace of small business employment growth from May to June was the largest the national index has seen since June 2013. With a strong one-month growth rate, the South Atlantic hit a record level in June at 101.96 to claim the top spot among regions. Washington increased its lead among states, gaining 0.13 percent from May to June to bring its index level to 104.50. At 104.96, Seattle was essentially unchanged and remains the top-ranked metro index. Up 0.52 percent this month, Construction had its strongest gain in more than three years, the largest increase among all industries in June.

"The Paychex | IHS Small Business Jobs Index rebounded 0.21 percent in June, reversing May's decline of 0.18 percent. At 100.81, the index improved to its strongest level of 2016 and close to one percent higher than the 2004 base year," said James Diffley, chief regional economist at IHS.

"While we've seen a lot of movement in the index over the past couple of months, I think it's important to focus on the long-term trend: sustained, moderate growth. The index is now up 0.44 percent through the first half of 2016, which is certainly a positive," said Martin Mucci, president and CEO of Paychex.

National Index
Increasing 0.21 percent in June, the national index recovered all of its May losses and improved to its best level of 2016, 100.81. The national index improved again in the second quarter, following a strong 0.37 percent first quarter increase. The index is now up 0.44 percent through the first half of 2016. After trending flat or negative for the past 18 months, the national index is up year-over-year, 0.18 percent. Reversing the trend from May, eight of the nine regions and seven of the eight industries analyzed improved in June.