The number of small businesses that are hiring new employees has dropped for the fourth month running in the United States.
According to a report by Paychex, the drop in hiring was complemented by an increase in wages during the same period under review.
The report states that there is a 0.24 percent decrease in hiring in the month of June, which is the lowest since 2011. The new hourly wage rate is pegged at $25.82, which is a 2.88 percent increase over the course of the last 3 months.
“In the last few months, we have witnessed an uncertain period because of the unpredictable nature of the legislation and how they affect the growth of small business.” Paychex president, Martin Mucci said after the report was published. “The reduction in the number of employed staff and increase in wages is likely down to regulations that are not clear alongside a narrow labor market.”
President Trump’s Legislature Helping The Economy
Earlier in the year, the Paychex stated that the growth is due to President Trump’s favourable business policies which include regulation rollback, tax reform, and health-care reform.
Small business witnessed more growth in Tennessee while Dallas is listed as the top metro area. Washington and Arizona witnessed the highest wage earnings growth in the last 3 months.
The Paychex report is released a day before the release of the June report of ADP’s in the private sector, which was shifted back to the 4th of July, and just two days before the statistic of the Bureau of Labor on employment data.