Small business employees saw their wages grow last month at the strongest rate in more than two years, according to a report from human resources firm Paychex.
Hourly earnings in April increased at an annual rate of 3.25 percent, the best showing since 2016. Wages of $26.56 per hour last month were up 2.69 percent, or 70 cents, from a year ago.
“The low unemployment rate is contributing to steady increases in wage growth,” Martin Mucci, Paychex president and CEO, said in the report released Tuesday. “With tightening labor conditions and wages continuing to show positive momentum, business owners and HR managers will need to focus on recruitment and benefit strategies to attract and retain qualified talent.”
However, the overall Small Business Jobs Index of business conditions declined 0.12 percent from last month to 99.53.
