Tennessee, which had been leading all states in small business job growth before the coronavirus pandemic, was one of only two states to show a drop in small-business job growth in March, according to data released Tuesday by the payroll processing firm Paychex.
Tennessee and Maryland were the only two states in the latest Paychex | IHS Markit Small Business Employment Watch to show a drop in small business employment growth over the past 12 months. Tennessee showed a 5.87% decline in small business jobs in the past 12 months.
While the national index remains 4.03% below its March 2020 level prior to the pandemic shutdowns, the monthly gain reported Tuesday was the biggest since 2013 for the country as a whole.
Another leading indicator of economic strength, hourly earnings, rose 2.98% over the past 12 months nationwide. Weekly earnings, which include both hourly pay and the number of hours worked, increased by 3.58% nationwide.
In Tenneseee, hourly earnings rose 42.45% to $25.81 and weekly earnings increased by 1.47% to $847.22 among the small businesses in the Paychex sample.
“With vaccinations ramping up across the country and business restrictions easing as a result, small business employment growth is starting to move in a positive direction,” said Martin Mucci, Paychex president and CEO. “Increased hiring and wage growth in the leisure and hospitality industry, which was particularly impacted over the past year, are promising signs.”
Mucci said the extension of the Paycheck Protection Program for two more months provides additional support as the loans should help qualifying businesses weather remaining challenges resulting from the COVID-19 pandemic.
The monthly report is compiled from aggregated payroll data of approximately 350,000 clients on the Paychex human capital management suite.
– Compiled by Dave Flessner