January Shows Stronger Employment Growth Among Small Businesses, According to the Paychex | IHS Small Business Jobs Index

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National index grew 0.09 percent in January, its strongest one-month gain since its peak in April 2014; West North Central region continues to hold top index spot; Indiana surges to the top-ranked state and Dallas maintains its lead among metro areas

ROCHESTER, N.Y.--(BUSINESS WIRE)-- Following several months of slowing employment growth, the Paychex | IHS Small Business Jobs Index grew 0.09 percent in January, representing the strongest one-month gain since the national index peaked in April 2014. Year-over-year, however, the national index declined 0.38 percent. The West North Central region remained the top regional index despite having the worst one-month growth rate. Indiana jumped to the top-ranked state index and Dallas continued its hold on the top spot among metro areas.

“The Paychex | IHS Small Business Jobs Index began 2015 on an upswing, gaining 0.09 percent during January. Though still below 2014 levels, at 100.65, small business employment growth remains robust,” said James Diffley, chief regional economist at IHS.

“Following several months of slower employment growth, it’s encouraging to see small businesses start the New Year on a high note,” said Martin Mucci, president and CEO of Paychex. “We’re hopeful that this will be a positive trend small businesses continue to see throughout 2015.”

The January 2015 Paychex | IHS Small Business Jobs Index

National Index

Although growth accelerated in January, the improvement has not reversed the downturn seen in the latter half of 2014. Still, fifteen of the twenty states analyzed showed positive movement in January. At this rate, small business employment is growing near the same pace seen during the last quarter of 2013.

Regional Employment

At 101.83, the East North Central region jumped to the second ranked regional index with the best one-month growth rate for the second straight month. Despite having the worst one-month growth rate at -0.42 percent, the West North Central remains the top-performing regional index. The Atlantic regions both showed positive gains in January, yet remain below 100.

State Employment Trend

Indiana surged to the number one ranked state index in January. Though the surge will likely be unsustainable, Indiana did rank 15th in overall fourth quarter job growth as measured by the BLS. Boasting strong growth rates, the Georgia index is at its highest level since 2006. New Jersey remains the lowest ranked state index, lagging in small business and total jobs.

Note: Analysis is provided for the 20 largest states based on U.S. population.

Metropolitan Employment Trend

Rising to 103.55, Dallas recovered from December’s one-month decline to hold its position as the top metro index. Houston, however, has lost momentum in the face of the oil price deflation, reporting a negative 12-month growth rate for the first time in nearly a year. Boston and New York City are trending below 100, with two of the worst 12-month growth rates among metro areas.

Note: Analysis is provided for the 20 largest metro areas based on U.S. population.

Launched on April 1, 2014, the monthly index from Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small-to medium-sized businesses, and IHS, Inc., a leading global source of critical information and insight, provides analysis of small business employment trends across the U.S.

The index analyzes same-store, year-over-year worker count changes to identify and track small business employment trends using real small business payroll data from the Paychex client base. The index is based on aggregated data from approximately 350,000 small businesses with fewer than 50 workers across the United States, one of the largest sample sizes of any small business index or report in the country, and provides timely, accurate insight into national, regional, state, and metro employment activity. The index uses a base year of 2004, a period of expansion before the start of the economic downturn. When the index trends up it is a sign of a strengthening job market, and when it trends down it is a sign of a slowdown.

For more information about the Paychex | IHS Small Business Jobs Index, please visit the jobs index website. Plus, view and download the January 2015 Paychex | IHS Small Business Jobs Index infographic. Or, sign up to receive monthly alerts on the Paychex | IHS Small Business Jobs Index.

About Paychex

Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 580,000 payroll clients as of May 31, 2014. For more information about Paychex and our products, visit www.paychex.com.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2015 IHS Inc. All rights reserved.

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Media:
Paychex, Inc.
Lisa Fleming, 585-387-6402
lfleming@paychex.com
@PaychexNews
or
IHS
Jim Dorsey, 781-301-9069
Jim.dorsey@ihs.com
or
Eric Mower + Associates
Tom Brede, 585-389-1870
tbrede@mower.com

Source: Paychex, Inc.

Released February 3, 2015