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Small business job creation falls in 2015

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Small business job creation falls in 2015

Worst year for jobs growth since 2011.

Small business jobs creation, a key indicator of economic vibrancy, fell to its lowest level in four years, according to a study released today.

The Paychex | IHS Small Business Jobs Index decreased to 100.37 in December as 2015 ended consistently with a downward trend since the index peaked in April 2014 (101.26). Though expansion is still evident, the 12-month growth rate is -0.19%, with gains continuing to slow each of the past five years following the low point of the recession. Analyzing the national index in 2015, there were increases in the first quarter, followed by consecutive declines in the second and third quarters, capped with little movement in the fourth quarter.

Ranked last among the industries tracked by the index, Manufacturing has been the weak spot of the US economy.

"December 2015 marks the 51st consecutive month job gains have exceeded the pace of our base year over a decade ago," said James Diffley, chief regional economist at IHS. "Nevertheless, 2015 was the softest year for small business employment growth since 2011."

"The national index steadily trended downward throughout much of the 2015. What that tells us is that while small businesses certainly added jobs this year, the pace at which they did so slowed," said Martin Mucci, president and CEO of Paychex.

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