Labor costs remain high for small businesses, but a report shows wage growth is slowing for some
Employee wages are one of the biggest costs for small businesses
NEW YORK (AP) — Employee wages are one of the biggest costs for small businesses.
A new survey found some owners may be seeing a bit of relief when it comes to wages. But while some say wage growth has stabilized or slowed, others note they haven't seen any moderation in their industries yet.
The Paychex Small Business Employment Watch found hourly earnings growth for workers at firms with 50 employees or less dropped to 2.89% in August. It's the first time growth has dropped below 3% since January 2021.
“After holding steady for several months, hourly earnings growth continued to decelerate in August,” said John Gibson, Paychex president and CEO. “Falling below three percent for the first time in three years is another notable signal that the labor market is moving closer to its pre-pandemic level.”
