NEW YORK (AP) — Employee wages are one of the biggest costs for small businesses.
A new survey found some owners may be seeing a bit of relief when it comes to wages. But while some say wage growth has stabilized or slowed, others note they haven't seen any moderation in their industries yet.
The Paychex Small Business Employment Watch found hourly earnings growth for workers at firms with 50 employees or less dropped to 2.89% in August. It's the first time growth has dropped below 3% since January 2021.
“After holding steady for several months, hourly earnings growth continued to decelerate in August,” said John Gibson, Paychex president and CEO. “Falling below three percent for the first time in three years is another notable signal that the labor market is moving closer to its pre-pandemic level.”
John Wilson, the owner of Wilson Plumbing and Heating in Akron, Ohio, with more than 150 employees, said labor costs are one of his biggest expenses, making up about 50%-70% of his budget. He said he's seen wages going up steadily over the years but he's seeing signs of stabilization — some recent job candidates have been more open to salary negotiations, for example.
“If labor costs aren’t managed well, it could disrupt the entire business," he said.
Albert Brenner owns a manufacturing business, Altraco, in Thousand Oaks, California. He said he hasn’t seen signs of a significant deceleration in wages yet. His top concerns right now are inflation, supply chain disruptions and the overall economy, but labor costs are one of his largest expenses.
“We are constantly balancing the need to offer competitive wages to retain skilled workers with the need to manage our overall expenses,” he said.
According to the Paychex data, one-month annualized hourly earnings growth dropped to 1.91%. The national jobs index increased 0.02 percentage points to 99.89 in August, indicating nominal year-over-year job losses. The national small business jobs index has averaged 100.37 through eight months of 2024, representing modest employment growth.
The jobs index is scaled to 100. Index values above 100 represent new jobs being added, while values below 100 represent jobs being lost.
Gibson said that the data supports broader trends of a cooling labor market and expectations that the Federal Reserve could begin lowering interest rates soon.
Josh Miller, CEO of Clean Carpets, a professional carpet cleaning service based in Austin, Texas, with six employees, said labor costs account for almost 45% of his total operational costs.
He said he hasn't felt any deceleration in wage growth, mainly since, as a service-based business, finding skilled workers who can also run the company's specialized equipment is always a challenge.
”The labor market in Austin is extremely competitive for skilled labor, so we continue to pay either at or above market rates to retain our talent," he said. “Inflation may be cooling, but we continue to experience upward pressure on wages to attract and retain reliable staff.”
The Paychex Small Business Employment Watch draws from the payroll data of about 350,000 Paychex clients.
FILE - Early-morning light shines on shops on Main Street, Saturday, June 11, 2022, in Bar Harbor, Maine. (AP Photo/Robert F. Bukaty, File)
FILE - A hiring sign is displayed at a restaurant in Mount Prospect, Ill., Feb. 1, 2024. (AP Photo/Nam Y. Huh, File)
NEW YORK (AP) — The longtime host of “The Late Show with David Letterman” found himself answering questions rather than asking them when a federal judge in New York City put the entertainer through an audition of sorts on Monday for a possible role as a juror in a criminal trial.
It was the serious setting of a criminal trial over a cryptocurrency fraud when Judge P. Kevin Castel confronted the famous bearded comedian, identified in court only as “Juror 16,” with questions just as he did three dozen other potential jurors to determine who would be on a panel of 12 jurors and four alternates.
The prospective jurors had already survived a general round of questioning in which individuals are dismissed for hardship reasons, such as medical issues or jobs from which they cannot be spared. The trial is expected to last less than two weeks.
When Letterman, who stepped down from his show in 2015, made it to what could be the final round for admittance on the jury, the judge lobbed a softball: “Where do you live?”
“Hartford,” Letterman responded, proving that he couldn't make it through a single word without delivering a joke.
“No, it's a joke,” Letterman quickly let the judge know. Hartford is in Connecticut, which would have disqualified him from the jury because it is outside the area where jurors are drawn from.
“Nice try,” the judge responded, adding, “You figured you would forgo Queens,” another location outside the area covered by the Southern District of New York. Queens is located in the Eastern District of New York.
After Letterman revealed his true area of residence — Westchester County — the pair began a volley of questions and answers totaling nearly three dozen exchanges.
Along the way, the judge, lawyers and three dozen or so prospective jurors learned a lot that the world already knows about Letterman. He was born in Indianapolis, obtained a degree from Ball State University in Muncie, Indiana, and has a 20-year-old son in college in Massachusetts.
Asked what he does for a living, Letterman said he was currently “working for a company called Netflix.”
“Spouse or significant other?” Castel asked.
“I've had both. Currently I just have the spouse,” Letterman responded.
Asked how he gets his news, Letterman gave a nod to the past, saying: “Every morning I used to pick up the paper off the front porch. Now, I turn on the computer and it's an aggregation of news sources from all over the United States and around the world.”
Asked what he likes to watch besides any Netflix programs he's involved with, Letterman said, “I like sports.”
“I'm happy football is here. I'm happy it's this time in the baseball season. I like motor sports. I like pretty much what most Americans watch on TV,” he said.
The judge asked him if he's an Indianapolis Colts football fan.
“Big Colts fan. 0 and 2, but still a fan,” he said, referring to the fact that the Colts have lost their first two games this season.
For hobbies, Letterman said he likes to fish, ski and be outdoors.
“Ever called as a juror?” the judge asked.
“Been called many times. Just couldn't make it happen,” Letterman answered.
“You know, this may be the charm,” Castel said, aware that Letterman had a 50-50 chance to make it onto the panel.
“It would be a pleasure,” Letterman said.
In the end, shortly before the jury was sworn in, Letterman was ejected when a prosecutor exercised what is known as a “strike,” which allows lawyers on either side to release a certain number of potential jurors from the panel for any reason at all. It was the third of four strikes exercised by prosecutors. No reason was given.
David Letterman arrives at federal court in New York, Monday Sept. 16, 2024. (AP Photo/Stefan Jeremiah)
David Letterman arrives at federal court in New York, Monday Sept. 16, 2024. (AP Photo/Stefan Jeremiah)
David Letterman arrives at federal court in New York, Monday Sept. 16, 2024. (AP Photo/Stefan Jeremiah)
David Letterman arrives at federal court in New York, Monday Sept. 16, 2024. (AP Photo/Stefan Jeremiah)
David Letterman arrives at federal court in New York, Monday Sept. 16, 2024. (AP Photo/Stefan Jeremiah)
