Small-Business Job Growth ‘Resilient’ Even Amid Inflation: Paychex CEO
Paychex continues to regularly monitor its “key leading indicators for signs of changes to the macroeconomic trends,” said CEO Martin Mucci on an earnings call Wednesday for fiscal Q1 ended Aug. 31. Though “we have seen some moderation in key…
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issues, we have not yet seen any significant changes,” said Mucci, who's retiring as CEO Oct. 14. Workers at U.S. small businesses “continue to benefit from higher wages,” he said. New jobs continue to grow, “but at a more moderated pace,” and job growth at U.S. small businesses “remains resilient even in the face of a tight labor market and inflation pressures,” he said. Employment levels at Paychex’s existing clients “have continued to increase as they’re finding more people to fill those positions,” he said. Paychex is finding new business starts “are not as strong as they were last year,” said Mucci. After the COVID-19 pandemic began, “we had a lot of people leave big business and start businesses,” he said. Small business employee retention has started to “normalize a bit because some small businesses that started during that period have gone out of business,” he said. “But the demand for employees from small businesses is still needed and they’re still adding employees.”