FranNet is pleased to share some recent news on the state of small business growth and jobs in the U.S. Released earlier this month by payroll software company Paychex and IHS Markit, a global analytics provider, it reveals that national job growth continues to strengthen in the small business sector—a welcome sign for the franchising industry. The national small business jobs index and wage data both noted positive increases of 5.48% and 3.68%, respectively.
According to James Diffley, HIS Market’s chief regional economist, the overall September job index reached 99.95, its highest level since mid-2017. Below are some additional takeaways:
Covid Recovery Continues
The pace of small business employment growth notched its fifth straight monthly increase, going back to June. The 5.48% growth in the national small business index is a record high for the past 12 months, even though it’s a full point below the pre-pandemic 2012-2016 peaks.
The 3.68% surge in wage growth is the fourth consecutive monthly increase. Average hourly earnings, now at the $29.68 level, are up $1.05 year over year—the first time they’ve topped a dollar in the last decade.
Small Business Gains by State
An analysis of the 20 largest states, based on U.S. population numbers, reveals Texas as the top state for small business employment growth, supplanting Arizona. California and New York led other states for one-month total gains, with Washington reappearing on the list for the first time since 2019.
Wages by State
Four of the top five states posting the best hourly earning growth in wages hailed from the South. North Carolina, with a 4.41% increase, topped Georgia, Florida, and Tennessee. Georgia led the results for weekly wage growth, at 4.15%.
Job & Wage Winners by Industry
The report looked at seven major industry sectors and, for the first time since 2012, Leisure and Hospitality Jobs Index ranked first among all sectors at 102.23, an increase of 3.86%. This sector also topped earnings growth, posting an 8.14% gain.
The full September Paychex | IHS Markit Small Business Employment Watch report can be accessed by following this link.
Having confidence in the strength of the U.S. small business economy is an important factor for those considering an entrepreneurial future. This report, along with other leading economic indicators, reveals an encouraging snapshot of the country’s continued pandemic recovery. If you’re encouraged by the current small business environment, perhaps it’s time to begin an entrepreneurial journey of your own. We can help you get started today by setting up a no-cost, no-obligation appointment with a qualified FranNet representative who both lives and works in your area. Together, we can find a franchise ownership opportunity that matches up perfectly with your lifestyle and income-oriented goals.