Small business is back: Paychex CEO
With the Fed’s decision not to raise interest rates, the recent August jobs report remains top of mind as a gauge of the US economy.
Marty Mucci, the CEO of Paychex (PAYX), the number two payroll processor in the United States, sat down with Yahoo Finance to discuss the real pulse of the jobs picture.
As small businesses make up 95% of all businesses in the US, often leading the way in employment trends.
“I think what we’re seeing is continued slow, gradual improvement in the small and mid-sized business environment,” said Mucci.
Mucci added that Paychex’s IHS Small Business Index shows that while we dropped a bit in August, we are still ahead of base in 2004 from a job growth perspective.
On the question of a potential rate increase in October and beyond, Mucci doesn’t foresee a big impact on small business. He added that “we are seeing consistent growth, higher growth rates of employment in the small and mid-sized business market.”
Tailwinds for Paychex have included an improved labor market, the build-out of cloud offerings for clients, and higher demands for their offerings to help clients understand the complexities of new legislation like the Affordable Care Act.
Paychex will remain a name to watch as investors remain focused on employment data through the rest of 2015 and next year.
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