Tennessee leads the nation in small business job growth, according to a new payroll survey of small businesses by Paychex IncTennessee leads the nation in small business job growth, according to a new payroll survey of small businesses by Paychex Inc.
The Paychex | IHS Markit Small Business Employment Watch for May shows the Volunteer State led all states in small business job growth in the past 12 months, growing 0.48% more jobs over the past year. In wage growth, Tennessee ranked 7th highest among the states with an annual growth rate of 2.62%. Hourly earnings among the companies in the survey averaged $24.17 in Tennessee during May.
Tennessee was among only four states showing positive job growth in the Paychex survey. Nationwide, the Paychex study showed relatively stagnant job and wage growth last month.
“The national index has stabilized in 2019, though at a level indicating little expansion by small businesses,” said James Diffley, chief regional economist at IHS Markit.
The South continues to lead regions in employment growth with Tennessee and Georgia among the top states. Jim Brown, Tennessee director of the NFIB, said Tennessee’s relatively low taxes and regulations make the state attractive for small business growth.