Paychex Small Business Jobs Index Improves for the Fourth Consecutive Month

Job gains were broad based while hourly earnings growth remains below three percent

ROCHESTER, N.Y., June 30, 2026 (GLOBE NEWSWIRE) -- The Paychex Small Business Jobs Index—a primary component of the monthly Paychex Small Business Employment Watch report—shows the pace of job growth among U.S. small businesses with fewer than 50 employees improved for the fourth consecutive month in June, matching its highest index level since August 2025 (99.83) and marking the first four-month consecutive increase since November 2020. While gains were broad based, increases across the West region (1.22 percentage points) and the Leisure & Hospitality sector (1.68 percentage points) helped drive the jobs index gains in June.

Meanwhile, hourly earnings growth for U.S. workers remains below three percent (2.80%). Weekly hours worked (0.14%) continued to trend positively for the fourth consecutive month, as weekly earnings growth in June reported 2.80%.

“The pace of small business job growth improved for a fourth consecutive month in June, matching its highest level since August 2025 and once again reinforcing the resilience of small businesses,” said John Gibson, Paychex president and CEO. “Broad-based momentum across most regions and many states, coupled with continued increases in weekly hours worked and earnings, signals steady demand for workers among small businesses as we move through summer.”

“The pace of employment growth across our overall client base improved again in June, with slightly stronger growth among those with 50 or more employees,” Gibson added.

Jobs Index and Wage Data Highlights

• All regions increased their small business employment growth rate during the past quarter, with the largest three-month gain in the West (1.95 percentage points).
• All sectors improved their pace of small business employment growth during the past quarter, led by Leisure and Hospitality (1.69 percentage points). Education and Health Services topped sectors for small business job growth in June, while Leisure and Hospitality’s one-month surge from ranking sixth also helped lift industry’s jobs index level (99.55) to a two-year high.
• Indiana (101.46) reclaimed its role as the top state for small business employment growth, a position it has held for nine of the last 24 months.
• California’s jobs index (100.01) gained more than two percentage points during the past quarter to land above 100 in June – a first since March 2024.
  

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 800,000 clients 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 platform 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
@Paychex

Erin McAward
ICR, Inc.
Account Director
paychexpr@icrinc.com

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