The Paychex Small Business Employment Watch reports that January is the 34th consecutive month of job growth for U.S. small businesses, with wage growth for workers remaining stable at 3.47%. This is despite 65 minimum wage changes taking effect in various states and localities on January 1. Small and medium-sized businesses remain resilient despite challenges such as a tight labor market, rising employer regulations, and the cost of providing benefits to attract and retain employees. The national index indicates continued job growth but at a slower pace, with all regions reporting positive job growth in January. The South leads the pace of regional job growth, while Tennessee, Texas, and Virginia are all reporting index levels above 102. Education and Health Services leads industries for small business job growth to start 2024, with a jobs index above 102 for 33 consecutive months leading up to January 2024.