DALLAS — Editor's Note | This article was originally published in the Dallas Business Journal here
The Dallas-Fort Worth area ranked No. 1 among 20 U.S. metros for small business employment growth last month, according to a new study.
DFW recorded the best score in the country on the Small Business Jobs Index released July 2 by Paychex Inc., an Irving-based payroll and human resources software company.
The index score of 102.62 for DFW showcased robust hiring; the index is scaled to 100, which would represent no year-over-year growth. The reading was 101.51 a year ago, indicating job gains are accelerating in 2024.
The industry leading the way for small business employment growth in DFW were financial activities and professional and business services, while leisure and hospitality experienced a sizable downturn, according to the report.
For the index, Paychex (Nasdaq: PAYX) uses payroll data from 350,000 businesses with fewer than 50 employees. The company overall says it works with roughly 740,000 businesses and paid 12 million workers in 2023.
Texas ranked fourth among states for small business job growth with an index score of 101.24 in June.
Paychex found that nationwide, small business employment was up slightly last month but that growth is slowing. The effects have been most pronounced in California. Houston, meanwhile, ranked No. 16 on the list, with a index score of 99.41, indicating job losses.
"While jobs are growing nationally, small businesses in some geographies and industries continue to face a challenging operating environment due to complex regulations, a tight labor market, and inflationary pressures," stated John Gibson, Paychex president and CEO.
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