Paychex Small Business Employment Watch
U.S. Small Business Employment Rate Remains Steady in September
ROCHESTER, N.Y., Sept. 29, 2026 (GLOBE NEWSWIRE) -- According to the Paychex Small Business Employment Watch, which reports on employment levels in U.S. small businesses with fewer than 50 employees, the pace of job growth increased 0.02 percentage points to 99.15 in September. The jobs index remained broadly in line with the 2026 year-to-date average of 99.19. Hourly earnings growth remained below three percent in September (2.78%), extending a more than two-year trend of moderating wage growth. At the same time, weekly earnings and hours worked growth remained positive, indicating businesses continue to meet demand through existing workforce capacity.
“The small business labor market continues to demonstrate remarkable stability,” said John Gibson, Paychex president and CEO. “Our data shows businesses are largely maintaining staffing levels. The pace of employment growth across our overall client base improved slightly in September, with stronger growth among businesses with more than 50 employees. Sustained increases in weekly earnings and hours worked growth demonstrate that businesses continue to meet operational needs without increasing hiring. With hourly earnings growth remaining below three percent for more than two years, labor cost pressures have become more manageable. These trends point to a labor market that remains fundamentally solid.”
Jobs Index and Wage Data Highlights
- Hourly earnings growth (2.78%) moderated slightly in September as one-month annualized growth (2.41%) slowed to its lowest level in nearly six years (October 2020: 2.40%).
- Weekly earnings growth increased to 3.07% in September, marking the ninth consecutive month of growth.
- Weekly hours worked growth (0.21%) was positive for the seventh consecutive month in September.
- The Midwest remained the top region for small business employment growth with a 99.62 jobs index in September.
- Arizona (100.59) led states for small business job growth in September and has reported an index level above 100 for the last five months. Phoenix (101.31) led U.S. metros for job growth in September.
- Education and Health Services (99.79) remained the top sector for small business job growth in September and has ranked among the top two sectors every month since February 2023.
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) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contacts
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705
tvolkmann@paychex.com
Erin McAward
ICR, Inc.
Account Director
paychexpr@icrinc.com
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