Small businesses across the U.S. added jobs at a faster pace in April, extending a modest rebound that economists say could signal continued resilience despite mounting uncertainty around the broader economy.
New data released this week by Rochester-based Paychex showed the company’s Small Business Jobs Index rose to 99.16 in April, marking the second consecutive month of gains and the largest month-over-month increase since February 2025.
The index, which tracks employment trends among businesses with fewer than 50 employees, increased 0.35 percentage points from March and has now climbed 0.39 percentage points since February — the strongest two-month gain in more than three years.
“Despite facing an evolving set of challenges and an increasingly uncertain macroenvironment, our latest employment data from U.S. small business clients indicate some encouraging signs,” Paychex President and CEO John Gibson said in a statement.
The report also found that weekly hours worked growth remained positive for the second straight month, something that has happened only twice in the past five years. Hourly earnings growth held steady at 2.71%, remaining below 3% for the 18th consecutive month.
Paychex said all four U.S. regions experienced stronger small business employment growth in April, led by the Northeast and West. The Midwest continued to post the strongest overall performance nationally for the 23rd consecutive month.
Construction saw the biggest improvement among industries, with its jobs index rising 0.64 percentage points during the month. The sector performed especially well in the Midwest and Northeast, according to the report.
Wisconsin ranked highest among states for small business job growth, while Philadelphia led major metropolitan areas.
Gibson said employment among larger Paychex clients has remained relatively stable, while the strongest recent acceleration has come from smaller employers.
The monthly Small Business Employment Watch has been published by Paychex since 2014 and tracks hiring and wage trends using payroll data from businesses across the country.
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