Monthly UpdateJun 2, 2026, 08:32 AM
Paychex Small Business Jobs Index Rises to 99.34 in May
AI Summary
The Paychex Small Business Jobs Index improved for the third consecutive month in May, reaching 99.34, its highest level in 2026. This indicates durable labor market strength among U.S. small businesses. Weekly earnings growth increased for the fifth consecutive month to 2.98%, while weekly hours worked also saw positive growth for the third month. Most states and metros analyzed reported an increase in small business job growth.
Key Highlights
- Paychex Small Business Jobs Index increased 0.18 percentage points to 99.34 in May.
- This marks the third consecutive monthly improvement and highest level so far in 2026.
- Hourly earnings growth remained steady at 2.73% in May.
- Weekly earnings growth rose to 2.98%, its highest level since January 2024.
- Weekly hours worked growth was positive (0.12%) for the third consecutive month.
- 14 of the top 20 states and 15 of the top 20 metros recorded increased job growth.
- Education and Health Services (100.37) led sectors; Manufacturing (99.04) showed strongest increases.
Price Impact