Hourly earnings growth accelerated for the eleventh consecutive month for workers of U.S. small businesses, and Dallas leads the nation in small business job growth, according to the latest report from Paychex | IHS Markit Small Business Employment Watch.
Job gains slowed slightly in April, nationwide, but the state of small business remains strong, and nowhere is that truer than here in Dallas, where the report shows the nation’s strongest hourly earnings and employment growth.
“Wages [have been] increasing for 11 consecutive months and job growth [is] near an eight-year high,” says Martin Mucci, Paychex CEO. “Texas continues to set the pace among states and metro markets. Texas led all states in small business employment growth and achieved record high hourly earnings growth in April, driven by Dallas’ eighth consecutive month as the top-performing metro in both categories.”
Nationally, hourly earnings growth improved 4.85% to $30.10. At 6.09% to $30.43, hourly earnings growth in Dallas hit a new record level for the ninth straight month. Texas also hit record high hourly earnings growth as well as weekly earnings growth in April.
The top metro for the eighth consecutive month, Dallas improved its pace of hiring .24% in April, bringing its index to 105.37, which is nearly three points higher than the second and third-ranked metros, Atlanta (102.47) and Miami (102.16).
According to the analysts, leisure and hospitality leads the industry sectors in both small business job growth and hourly earnings growth by a significant margin. That said, the sector experienced the largest slowdown for the third consecutive month, the report shows. (Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found here.)
Education and health services was the only sector to improve in April. Manufacturing slowed to below 100 for the first month since October 2021. Construction leads sectors in 12-month weekly hours worked growth. Hourly earnings growth in education and health services in April reached a new record level since reporting began in 2011, yet remains last among sectors.
Small business owners from our neighborhood can join Paychex tomorrow for a virtual “Spotlight on Texas” roundtable featuring a panel of small-business experts who will, according to the promo, provide up-to-date information on programs and opportunities to assist Texas business owners in managing and growing their businesses.”