The competitive job market continues to drive wage growth higher, according to the latest Paychex | IHS Markit Small Business Employment Watch.

Steady growth in hourly earnings and hours worked – with hours worked in December posting the strongest gains since 2012 – pushed weekly earnings growth to 4.13%, a new all-time high for employees of small businesses. The pace of small business employment growth remains consistent, with the national jobs index increasing slightly (0.06%) in December to 98.16.

The competitive job market continues to drive wage growth higher, according to the latest Paychex | IHS Markit Small Business Employment Watch.

The pace of small business employment growth remains consistent, with the national jobs index increasing slightly (0.06%) in December to 98.16.

Weekly earnings continued to accelerate throughout 2019, reaching a record of 4.13% year-over-year growth in December, while hourly earnings growth closed the year at 3.07%.

“Small business job gains have flattened in the second half of the year as labor markets prove very tight,” said James Diffley, chief regional economist at IHS Markit. “In response, weekly earnings have accelerated, surging from 2.49% mid-year to 4.13% at year-end.”

“The new high seen in weekly earnings growth this month is certainly positive news for the employees of small businesses,” said Martin Mucci, Paychex president and CEO. “Not only are businesses raising wages, but they’re also increasing hours for their current employees, a sure sign employers are responding to the pressures of the tight labor market.”