Flat worker wages, which has figured prominently in the debate over income inequality, has been on the rise lately. New data from Paychex | IHS Markit Small Business Employment Watch confirms the trend of rising wages, with workers both working longer and earning more in December.
Paychex-IHS noted βsteady growth in hourly earnings and hours workedβ -- with the latter posting the strongest gains since 2012. Meanwhile, weekly earnings growth to new highs for small businesses:
βSmall business job gains have flattened in the second half of the year as labor markets prove very tight,β said James Diffley, chief regional economist at IHS Markit. βIn response, weekly earnings have accelerated, surging from 2.49 percent mid-year to 4.13 percent at year-end.β
βThe new high seen in weekly earnings growth this month is certainly positive news for the employees of small businesses,β said Martin Mucci, Paychex president and CEO. βNot only are businesses raising wages, but theyβre also increasing hours for their current employees, a sure sign employers are responding to the pressures of the tight labor market.β
Paychex-IHSβs figures also found that the South is the best region for small business jobs, while the West has seen the strongest earnings growth.