Steady Job Growth Among U.S. Small Businesses: Paychex Employment Watch Highlights for September 2025

Small Business Employment Steady Amid Economic Challenges, Says Paychex Report

ROCHESTER, N.Y. – September 30, 2025 – The latest Paychex Small Business Employment Watch reveals that job growth among U.S. small businesses, defined as those with fewer than 50 employees, has remained remarkably stable over the past year. The Small Business Jobs Index, a key metric derived from payroll data, has fluctuated by just over half a percentage point in the last 12 months, indicating a resilient labor market.

According to the report, the national Small Business Jobs Index stood at 99.52 in September, a slight dip of 0.31 percentage points from August. Despite this minor decline, the overall employment landscape for small businesses continues to reflect a steady pace of job growth.

John Gibson, Paychex president and CEO, commented on the findings, stating, “Our latest small business employment data once again indicates a steady labor market over the past year. This consistency reflects continued resilience from small businesses across the U.S. While we’re observing little change in our national data, the Midwest continues to stand out as the only region consistently delivering job growth over the past year and beyond.”

Key Highlights from the Report:

• Hourly Earnings Growth: Hourly earnings for small business workers rose to 2.68% in September, marking the first increase since October 2024, although it remains below the three percent threshold for the 11th consecutive month.

• Regional Insights: The Midwest has led the nation in small business employment growth for the past 16 months, boasting a Jobs Index of 100.02 in September. Notably, Ohio (100.87) and Indiana (100.64) are the only states reporting year-over-year job gains.

• Sector Performance: The Education and Health Services sector continues to dominate small business job growth, maintaining a Jobs Index of 101.06 for the 16th consecutive month. Financial Activities is the only other sector reporting year-over-year job gains in September.

Looking Ahead

As small businesses navigate the complexities of the current economic climate, the Paychex report serves as a vital resource for understanding employment trends and wage growth. The insights provided can help business owners make informed decisions to foster growth and stability in their operations.

For more detailed information and to stay updated on employment trends, visit the Paychex Small Business Employment Watch.

About Paychex

Paychex, Inc. is a leading provider of HR solutions, serving approximately 800,000 customers across the U.S. and Europe. The company is committed to helping businesses succeed by offering innovative human capital management solutions tailored to the needs of today’s workforce.

For media inquiries, please contact:

• Tracy Volkmann
  Manager, Public Relations
  Paychex, Inc.
  (585) 387-6705
  tvolkmann@paychex.com

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

As the small business sector continues to adapt, these insights will be crucial for understanding the evolving employment landscape in America.