Stable Employment Levels Continue for U.S. Small Businesses in August

Paychex reports positive weekly hours worked growth for the sixth consecutive month

ROCHESTER, N.Y., Sept. 01, 2026 (GLOBE NEWSWIRE) -- The pace of job growth (99.13) among small businesses in the U.S. remained consistent in August, according to the Paychex Small Business Employment Watch, which reports on employers with fewer than 50 employees. Weekly hours worked growth (0.07%) for small business personnel was positive for the sixth consecutive month in August – a stretch not seen since October 2020 – as employers continue to rely on their existing workforces to meet demand. Hourly earnings growth for employees remained below three percent (2.89%) for the 24th consecutive month, while weekly earnings growth reached 3.00% in August.

“August’s data underscores the continued resilience of America’s small businesses,” said John Gibson, Paychex president and CEO. “Employment among businesses with fewer than 50 employees remained stable in August, while our broader customer base, including employers with more than 50 employees experiencing slightly stronger job growth. At the same time, six consecutive months of positive weekly hours worked growth, the longest such stretch since 2020, signals that employers are seeing continued demand and, given the tight labor market, are relying on their existing workforces to meet it. Meanwhile, hourly earnings growth has remained below three percent for the last two years, suggesting wage growth has stabilized.”

Jobs Index and Wage Data Highlights

• The national jobs index (99.13) moderated 0.10 percentage points in August, remaining in line with its 2026 year-to-date average (99.20).
• The Midwest led regions for employment growth with a 99.48 jobs index, while the West region reported a notable 0.41 percentage-point gain.
• Phoenix (100.81) led the largest U.S. metros for job growth in August, marking the seventh time it ranked first during the past year.
• Education and Health Services, which has ranked among the top two sectors for job growth every month since February 2023, regained its No. 1 ranking with a 99.88 jobs index in August.
• Hourly earnings growth (2.89%) ticked up slightly in August as one-month annualized growth was at or above three percent (3.00%) for the fifth consecutive month.
• Weekly earnings growth reached 3.00% in August as one-month annualized growth has been consistently above three percent since February 2026.
  
  

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
@Paychex

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

A photo accompanying this announcement is available at 

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Paychex Small Business Employment Watch - August 2026

Paychex data shows employment levels across U.S. small businesses with fewer than 50 employees remained stable once again in August.