Paychex | IHS Small Business Jobs Index Indicates Continued Growth, Despite Short-Term Declines

ROCHESTER, NY--(Marketwired - October 04, 2016) -

• Small business job growth slowed 0.18 percent from the previous month, yet is 0.08 percent higher than a year ago
• South Atlantic reclaims the top spot among regions
• Washington remains top-ranked state, increasing its sizable lead
• Seattle continues to lead metro areas, followed by Atlanta and Phoenix
• Education and Health Services and Financial Activities increase modestly among industries

The Paychex | IHS Small Business Jobs Index declined from 100.70 in August to 100.52 in September, a decrease of 0.18 percent. While now at its lowest level in 2016, the national index remains 0.08 percent higher than a year ago. After a one-month hiatus, the South Atlantic returned to its position as the top-ranked region. Showing continued strength, Washington's index reached 104.91, an all-time high for the state index. Seattle remained the leading metro area, with its index increasing 0.44 percent from the previous month. Six out of eight industry sectors declined in September, with only Education and Health Services and Financial Activities experiencing modest increases.

"The Paychex | IHS Small Business Jobs Index declined in September to its lowest point in 2016. Nevertheless, at 100.52, the national index continues to show solid small business employment gains," said James Diffley, chief regional economist at IHS Markit.

"While we continue to see mixed results from month-to-month, the year-over-year trends remains positive. Also, with one quarter remaining in 2016, the national index is up 0.15 percent year-to-date," said Martin Mucci, Paychex president and CEO.

National Index
At 100.52, the national index is up 0.08 percent from last year, well above the baseline and representing continued small business employment growth. After two increases to start 2016, the national index has alternated between positive and negative results since February. The national index hit a 2016 peak in June and has declined 0.28 percent during the past three months.

Regional Employment
At 101.88, the South Atlantic reclaimed the top spot among regions. Up modestly (0.01 percent) from the previous month, the South Atlantic had the only one-month increase among regions; eight of the nine regions declined from August to September. East North Central had the lowest one-month growth rate, declining 0.59 percent, and is the lowest-ranked regional index, under 100 for the first time since 2013. The Central regions declined most in September, consistent with U.S. job growth now concentrated in the South and West, according to the BLS. The only regions showing positive gains from this time last year are the Middle and South Atlantic and the East South Central.