U.S. Small Business Employment Trends Hold Steady in October
More than half of the states analyzed increased their pace of small business job growth in October.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Paychex (PAYX) reported steady October job growth among U.S. small businesses with fewer than 50 employees in its employment survey. The national jobs index rose 0.06 percentage points to 99.21, versus 99.15 last month, 99.23 last quarter and 99.27 a year earlier.
Hourly earnings growth was 2.88%, remaining below three percent for the 26th consecutive month. Weekly hours worked growth was positive for the eighth consecutive month, at 0.11%. Weekly earnings growth increased to 3.04%, although three-month annualized growth fell below three percent to 2.89%, its first reading below that threshold since February 2026.
Details
News Market Reaction – PAYX
On Nov 3, the day this news came out, PAYX closed 0.14% above the previous close.
Data tracked by StockTitan Argus for the Nov 3 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Job growth remains consistent as weekly hours worked growth stays positive
ROCHESTER, N.Y., Nov. 03, 2026 (GLOBE NEWSWIRE) -- According to the Paychex Small Business Employment Watch, job growth among U.S. small businesses with fewer than 50 employees held steady in October. Hourly earnings growth remained below three percent for the 26th consecutive month, while weekly hours worked growth was positive for an eighth consecutive month, as employers continue to meet demand by increasing hours among their existing workforce.
“Job growth among small businesses with fewer than 50 employees has been largely unchanged over the last year, as employers continue to find ways to meet demand with the teams they have in place,” said John Gibson, Paychex president and CEO. “Weekly hours worked growth has remained positive for eight consecutive months, a trend that signals businesses are generating greater output from their existing workforce while remaining disciplined about adding headcount. Despite an evolving macroeconomic environment and ongoing challenges finding qualified workers, our customers continue to demonstrate resilience, with slightly stronger job growth among businesses with more than 50 employees. Overall, the labor market remains fundamentally solid.”
Jobs Index and Wage Data Highlights
- The national jobs index gained 0.06 percentage points in October to 99.21 and has been essentially unchanged compared to the last month (99.15), quarter (99.23), and year (99.27).
- The Midwest (99.51) topped regions for small business employment growth in October, a position it has held for 28 of the past 29 months.
- More than half of the states analyzed increased their pace of job growth in October.
- Arizona (100.85) led states for small business job growth for the third consecutive month, while Phoenix (101.57) led the largest metros, driven by strong gains in Manufacturing.
- Education and Health Services (99.86) remained the top sector for small business job growth in October and has been among the top two sectors every month since February 2023.
- Hourly earnings growth reported
2.88% in October, while weekly hours worked growth was positive at0.11% . - Weekly earnings growth increased to
3.04% in October, though three-month annualized growth (2.89% ) slipped below three percent for the first time since February 2026 (2.42% ). - Among sectors, Construction and Manufacturing led growth across hourly earnings, weekly earnings, and weekly hours worked in October.
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
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7c149457-0387-44b2-ad0f-be1d132ee95e
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Paychex report about small business employment in October 2026?
Job growth among U.S. small businesses with fewer than 50 employees held steady, with the national jobs index at 99.21. The index gained 0.06 percentage points in October and was essentially unchanged compared with the prior month, quarter and year.
Which regions and states led Paychex's October 2026 small business jobs index?
The Midwest led regions at 99.51, while Arizona led states at 100.85 for the third consecutive month. The Midwest held the top regional position for 28 of the past 29 months. Phoenix led the largest metropolitan areas at 101.57, driven by manufacturing gains.