money Texas earns top spot for small business jobs growth: report
Despite months of record jobs growth, millions of Americans remain out of work, and finding a job at a time like this can be a challenge.
So where should Americans look? The May report of the Paychex | IHS Markit Small Business Employment Watch breaks down the top states and metropolitan areas for small business jobs growth, and once again, Texas leads the way with Dallas ranking second among metros.
“Texas has been pretty strong for quite a few years now,” Martin Mucci, Paychex CEO, told Yahoo Finance Live. “There is a migration towards southern states like Texas and Florida that's bringing more workers in, and oil continues to be strong.”
Texas is home to more than 2.8 million small businesses, employing about 4.8 million people and accounting for 99.8% of the businesses, according to Texas Gov. Greg Abbott.
“When you see oil being strong and providing jobs... it attracts more employees. They build houses and now you have a lot of small businesses opening restaurants, [and a need for] contractors, roofers and landscapers,” added Mucci. “There also is lower minimum wage down in Texas, Florida, and in the South in general. That also helps businesses get started.”
Led by Texas, six states had an index level above 100 in May. Those states include Arizona, Florida, Indiana, North Carolina, and Tennessee.
When breaking down job growth by region, the South remained the strongest, more than one point above the national index level.
On an industry basis, job growth in leisure and hospitality continues to accelerate as the economy reopens and more people are traveling and dining out, gaining 1.9% in May and 12.4% during the past quarter. On the other hand, the pace of growth slowed considerably in construction, falling 1.8%.
“Construction slowed for the first time in over two years,” Mucci said. “[The drop] could be because of supply chain issues. It’s also difficult to find workers right now.”
The May jobs report is set to be released on Friday and will give us a comprehensive look at the progress made in the labor market’s recovery. According to Bloomberg consensus data, the U.S. economy is expected to regain 678,000 jobs, which would mark the largest jump in two months and the fifth month in a row of gains.
Seana Smith anchors Yahoo Finance Live’s 3-5 p.m. ET program. Follow her on Twitter @SeanaNSmith
READ MORE:
Masks in America now 'depending on an honor system' as pandemic wanes
Gas shortage could last 'weeks' despite Colonial Pipeline restart: expert
Peloton treadmill recall is 'just a pause, community base is hard to replicate': JMP analyst
Bitcoin will eventually hit '$1 million a coin,' CoinDesk editor predicts
