According to Gusto’s real-time payroll data from more than 300,000 small and medium-sized businesses across the country, net jobs is nearly the same this month as it was a year ago, and pay gains for newly hired workers continue to be modestly positive.
- In April, pay among newly hired workers was 2.7% higher than pay for those hired this time last year, led by increases in new hire pay within the Legal, Automotive, and Retail industries.
- SMB net jobs increased by 1.0% in April, nearly the same as last year in April. The fastest-growing industries in April were the Accommodations, Tourism, and Facilities industries.
Overall, the economy remains in a solid position. However, progress on Inflation has slowed in recent months, stalled by the continuing demand for workers, which pushes up costs, especially in the service sector. Consumers continue to be hurt by inflation, but pay raises over the past few years have enabled them to afford their lifestyles. If the labor market slackens noticeably in the coming months, workers may not be able to keep up with inflation, which could lead to softening consumer demand.
Economic uncertainty and rising costs have led many SMBs to take a more cautious approach to hiring. We expect this trend to continue, and with the exception of seasonal hiring throughout the summer, we expect continued, if slow, easing of the labor market for the next several months.
Gusto’s New Hires Pay Index
Pay for newly hired workers on the Gusto platform increased 2.7% in April 2024, meaning businesses paid new workers 2.7% more than new hires this month compared to April of last year, a sign of intensifying competition among employers looking for workers.
Hiring Trends
Net jobs increased by 1.0% across sectors in April 2024, nearly the same as last April.
About the data
Gusto pay and hiring trends data is derived using Gusto’s real-time payroll data from over 300,000 small and medium-sized businesses across industries and across the country. New Hires Pay Index calculates the percent change in average annualized pay between workers hired in a given month and those hired one year earlier.
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