Small Business Employment Growth Is on the Rise, According to the Paychex | IHS Small Business Jobs Index

ROCHESTER, NY--(Marketwired - March 07, 2017) -

• The national index increases for the third month in a row, up 0.39 percent this quarter
• South Atlantic has strongest one-month gain in more than four years
• Tennessee continues as the top-ranked state
• Atlanta ranks as the top metro for the third consecutive month
• Financial Activities industry sector has best one-month gain

The Paychex | IHS Small Business Jobs Index continued to increase in February, rising to 100.78, up 0.16 percent from the previous month and 0.39 percent for the quarter. Not only has the national index increased for three consecutive months, but the rate of growth has increased each month as well. The national index, however, is approximately flat compared to February 2016, up just 0.03 percent.

East South Central continues to lead small business growth among regions, improving its pace 1.83 percent year-over-year, followed by South Atlantic. Tennessee once again leads all states. Top-ranked for the third consecutive month at 103.85, Atlanta spiked 0.93 percent, its best one-month gain in nearly three years. Financial Activities jumped 0.53 percent in February, the best one-month gain among the industry sectors.

"Since November, small business job conditions have shown broad-based improvement as all industries and regions have positive three-month growth rates," said James Diffley, chief regional economist at IHS Markit.

"After three months of continued small business employment growth, it appears that business optimism following the election is now translating to jobs," said Martin Mucci, Paychex president and CEO.

National Index
Month-to-month changes for the national index have been trending in a positive direction for the past six months, since September. The national index improved 0.39 percent from December to February, the best quarter since early 2014. Currently at 100.78, the national index is signaling positive employment growth, 0.03 percent faster this year versus last.

Regional Employment
At 103.41, East South Central continues to lead small business growth among regions, improving its pace 1.83 percent year over year. In contrast, neighboring West South Central is the only region below 100 and is down 1.51 percent from last February. Ranked second among regions, the South Atlantic increased 0.37 percent in February to 102.17, its strongest one-month gain in more than four years. East North Central had the best one-month growth, 0.58 percent, aided by strong movement in the Trade, Transportation, and Utilities industry. Dropping to 100.19, Pacific fell for the seventh time in the past eight months as its index is ranked second to last for the first time since February 2012.