U.S. Small Business Job Growth Rate Remained Steady in November

According to the Paychex Small Business Employment Watch, small business job growth across the U.S. remained relatively consistent in November (99.91) and has averaged an index level of 100.25 through 11 months of 2024, representing modest employment growth. Hourly earnings growth (2.97%) and weekly earnings growth (2.84%) for workers stayed below three percent for the fourth and 10th consecutive month, respectively.

“Our national jobs data for November, which is based on real payrolls from 350,000 Paychex customers, indicates small business owners are retaining workers as employment growth holds steady and wage growth continues to trend in a more manageable direction,” said John Gibson, Paychex president and CEO. “We continue to see modest job growth through the first 11 months of the year as small businesses remain resilient and generally optimistic heading into the new year.”

Hurricane Recovery
Paychex Small Business Employment Watch data for November signaled an increase in job growth in some areas as recovery efforts continue after Hurricanes Helene and Milton:

• Construction job growth in Florida increased 2.55 percentage points to an index level of 99.95.
• Weekly hours worked in North Carolina (-0.81%) were down in November, but one-month annualized growth rebounded among sectors following Hurricane Helene.

“As anticipated, we can see an increase in construction jobs as North Carolina and Florida recover from the impacts of Hurricanes Helene and Milton,” added Gibson. “The recovery boon includes a notable spike in Georgia construction jobs as crews add to their workforce to help neighboring states with rebuilding. We expect this trend will continue until recovery efforts are complete.”

Jobs Index and Wage Data Highlights

• Texas gained 1.22 percentage points as its jobs index climbed to 101.60, which led states for job growth in November. Dallas (101.07) and Houston (100.94) ranked first and second, respectively, among top U.S. metros for job growth in November.
• The Midwest (100.62) remained the top region for small business employment growth for the sixth consecutive month.
• Hourly earnings growth in Tennessee (3.98%) ranked first among states in November, marking the first time Tennessee has ranked first since reporting began more than 10 years ago.
• Likely due to workforce composition changes due to recent hurricanes, Tampa (4.84%) jumped to No. 1 among top U.S. metros for hourly earnings growth in November.