The latest Paychex | IHS Markit Small Business Employment Watch benchmark report reveals the effect of increasing COVID-19 cases on small businesses in the U.S. The Jobs Index shows a slowing of 0.24% in December to 94.06, a decrease of 4.18% from the year prior.
A decline in weekly hours worked and hourly earnings growth decelerating to 2.63% brought national weekly earnings growth to 2.42%.
“The winter season brought a surge in COVID-19 cases and with it a retreat in jobs growth,” said James Diffley, chief regional economist at IHS Markit.
“The new pandemic stimulus package has come at the right time for business owners. COVID-19 cases continue to grow and many state and local restrictions remain in place, limiting business activity in some communities,” said Martin Mucci, Paychex president and CEO. “The second round of Paycheck Protection Program loans, simplified forgiveness for new and existing PPP loans, and an extension and expansion of the Employee Retention Tax Credit are all significant measures to help businesses weather the months ahead.”
In further detail, the December report showed:
- The South was the only region to improve job growth in December (up 0.04%);
- Florida regained its position as the top-ranked state, up 0.28% with an index of 97.00;
- Tennessee improved 0.76% in December and is up 1.01% during the past quarter, best among states;
- Houston and Dallas have the best three-month employment growth rates among metros;
- Construction leads the industry jobs index for the eighth consecutive month;
- Financial activities have the best weekly hours worked growth among sectors.
