Paychex, Inc.’s October gauge of job growth at U.S. businesses with fewer than 50 employees changed little, while weekly hours-worked growth remained positive as firms met demand with existing staff.
The national jobs index reached 99.21, a 0.06 percentage-point increase. Its October reading was close to 99.15 for the month-earlier comparison, 99.23 for the quarter and 99.27 for the year, Paychex said in its Small Business Employment Watch, released Nov. 3. The index tracks job growth, not the number of people hired, so the reading does not indicate a count of new positions. The series dates to 2014, and Paychex publishes historical data and methodology for its jobs and wage measures.
Hourly earnings growth registered 2.88%, staying below 3% for a 26th consecutive month. Weekly hours-worked growth was 0.11%, extending a run of positive readings to eight months. Weekly earnings growth reached 3.04%. The three-month annualized earnings-growth rate eased to 2.89%, its first reading below 3% since February 2026, when it was 2.42%.
The Midwest ranked first among regions, with an index of 99.51. It has topped the regional list in 28 of the past 29 months. Arizona led the states for a third consecutive month at 100.85, while Phoenix, at 101.57, was the leading large metro, supported by strong manufacturing gains. Education and Health Services was the top sector at 99.86; it has ranked first or second every month since February 2023. Construction and Manufacturing recorded the strongest October gains across hourly earnings, weekly earnings and weekly hours-worked measures.
Paychex President and CEO John Gibson said customers were getting more out of their current workforces and remaining measured about hiring because qualified candidates were difficult to find. He said job growth was slightly stronger among businesses with more than 50 employees. Paychex described the overall labor market as fundamentally solid and cited an evolving macroeconomic environment.
