Small Business Jobs Index and weekly hours worked growth rise for the second-straight month

The pace of job growth among U.S. small businesses showed an increase in April, marking the second consecutive month of gains as employers continued to demonstrate resilience amid ongoing economic uncertainty, according to the latest Paychex Small Business Employment Watch. The national jobs index, which reflects employment growth in U.S. small businesses with fewer than 50 employees, rose 0.35 percentage points from March to April (99.16), the largest one‑month increase since February 2025.

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The Paychex Small Business Employment Watch saw the pace of job growth increase for the second month in a row in April.

Hourly earnings growth for U.S. small business workers remained steady and below three percent for the 18th consecutive month in April at 2.71%. Weekly hours worked growth (0.18%) was positive for the second consecutive month, a trend that has only happened twice in the last five years.

"Despite facing an evolving set of challenges and an increasingly uncertain macroenvironment, our latest employment data from U.S. small business clients indicate some encouraging signs," said John Gibson, Paychex president and CEO. "Consecutive gains in the pace of employment and weekly hours worked growth in March and April demonstrate remarkable resilience among small business owners. We remain focused on supporting our clients as they manage both complexities and opportunities, including the 2025 tax cuts, so they are well positioned for long‑term success."

"Overall employment across our client base continues to be stable," Gibson added. "While moderate employment growth among Paychex clients with 50 or more employees remains consistent, smaller clients experienced an increase in the job growth rate during March and April."

Jobs Index and Wage Data Highlights

The national Small Business Jobs Index (99.16) has increased 0.39 percentage points since February. In addition to marking its largest one-month increase since February 2025, it is the largest two-month gain in more than three years (February 2023).
All four regions increased their pace of small business employment growth in April, with the largest one-month gains experienced in the Northeast (0.56 percentage points) and the West (0.50 percentage points). The Midwest (99.55) remained the top region for small business job growth for the 23rd consecutive month.
Wisconsin (100.84) and Philadelphia (100.09) led the largest states and metros, respectively, for small business job growth in April.
With a 98.97 jobs index, Construction experienced the largest one-month gain among industries (up 0.64 percentage points). Construction's jobs index reported stronger in the Midwest (101.00) and Northeast (100.43) than in the South (98.19) and West (96.63).
Weekly earnings growth (2.90%) increased again in April to its highest level since May 2024 (2.92%) as one-month and three-month annualized growth reported above four percent.

About the Paychex Small Business Employment Watch

Since 2014, the Paychex Small Business Employment Watch has been a trusted source of employment trends for U.S. small businesses with fewer than 50 employees. The Employment Watch website offers interactive charts and historical data across the report's two key components – the jobs index and wage data – as well as the methodology for both analyses. Visit the Bloomberg Terminals or subscribe to receive monthly alerts with the latest data.

*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.

About Paychex

Paychex, Inc. (NASDAQ:PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today's workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company's purpose of helping businesses succeed. Visit paychex.com to learn more.

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Media Contacts

Tracy Volkmann

Paychex, Inc.

Manager, Public Relations

(585) 387-6705

tvolkmann@paychex.com

@Paychex

Erin McAward

ICR, Inc.

Account Director

paychexpr@icrinc.com

Pace of U.S. Small Business Employment Increases in April