U.S. Small Business Employment Trends Hold Steady in October

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 at 0.11%.
• 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

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Paychex Small Business Employment Watch

According to the Paychex Small Business Employment Watch, job growth (99.21) among U.S. small businesses with fewer than 50 employees held steady in October.