National job growth in July was up notably across all industry sectors and regions over the previous month, according to aggregated payroll data of approximately 350,000 clients provided by Paychex. The data released in the latest report of the Paychex | IHS Markit Small Business Employment Watch shows the Small Business Jobs Index jumped 0.85 percent in July, the second strongest one-month increase since 2010, the period of recovery following the Great Recession. At 99.36, the small business jobs index is up more than one percent over last quarter and five percent from last year, suggesting a significant recovery from the COVID-19 pandemic. Hourly earnings growth improved to 3.11 percent in July, up from June’s increase of 2.84 percent.

“Hiring at small businesses across the U.S. grew significantly in July,” said James Diffley, chief regional economist at IHS Markit. “The national index jumped to 99.36, the highest level since the summer of 2018.”

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“The rate of hiring continues to increase steadily across all sectors,” said Martin Mucci, Paychex president and CEO. “July’s small business wage and job growth numbers indicate a continued rebound of the economy as employment increases.”

In further detail, the July report showed:

• The national index gained 1.04 percent during the past quarter, improving to 99.36.

• Small business employment growth improved across all industry sectors in July.

• All regions improved sizably in July, but the South continues to lead in small business job growth.

• Arizona now leads all states in small business job growth at 101.72.

• Dallas joins Tampa to lead all metros in employment growth, each with indexes above 102.

Paychex business solutions reach 1 in 12 American private-sector employees, making the Small Business Jobs Index report an industry benchmark. The national jobs index uses a 12-month same-store methodology to gauge small business employment trends on a national, regional, state, metro, and industry basis.

The complete results for July, including interactive charts detailing all data, are available at www.paychex.com/watch. Highlights are available below.

National job growth index

• The 0.85 percent jump in July matches the rapid growth seen in the overall economy and is the second strongest one-month increase since recovering from the Great Recession in 2010.

• At 99.36, the Small Business Jobs Index is up more than one percent during the past quarter and five percent from last year, both strong signs of continuing recovery from the coronavirus pandemic.

• The national index gained 1.04 percent during the past quarter, improving to 99.36.