U.S. Small Business Employment Rate Remains Steady in September

ROCHESTER, N.Y., Sept. 29, 2026 (GLOBE NEWSWIRE) -- According to the Paychex Small Business Employment Watch, which reports on employment levels in U.S. small businesses with fewer than 50 employees, the pace of job growth increased 0.02 percentage points to 99.15 in September. The jobs index remained broadly in line with the 2026 year-to-date average of 99.19. Hourly earnings growth remained below three percent in September (2.78%), extending a more than two-year trend of moderating wage growth. At the same time, weekly earnings and hours worked growth remained positive, indicating businesses continue to meet demand through existing workforce capacity.

“The small business labor market continues to demonstrate remarkable stability,” said John Gibson, Paychex president and CEO. “Our data shows businesses are largely maintaining staffing levels. The pace of employment growth across our overall client base improved slightly in September, with stronger growth among businesses with more than 50 employees. Sustained increases in weekly earnings and hours worked growth demonstrate that businesses continue to meet operational needs without increasing hiring. With hourly earnings growth remaining below three percent for more than two years, labor cost pressures have become more manageable. These trends point to a labor market that remains fundamentally solid.”