Core Insights - The report from Paycheck indicates a stable job market for small businesses, but hiring has slowed down slightly [1][3] - Small businesses, particularly those with fewer than 50 employees, have shown less than a 1 percentage point change in hiring over the past year, indicating stability despite economic uncertainties [3][4] - There is a notable increase in weekly hours worked, reaching a near-decade high, suggesting that employers are hesitant to hire new staff [5][6] Employment Trends - The small business segment is experiencing a labor supply issue, with challenges in finding qualified workers due to immigration constraints [6][7] - In the last two months, there has been a consecutive increase of over 3% in hours worked, a trend not seen in the past decade [8] - Historically, increases in hours worked at this level often precede employment growth in subsequent quarters, indicating potential future hiring [9] Wage Growth and Inflation - Hourly wage growth has remained below 3% for the 15th consecutive month, which is below the pace of annualized inflation [10][11] - The cost of labor is a significant factor for small and midsize businesses, and maintaining wage inflation at this level could help reduce overall inflation towards the Federal Reserve's target of 2% [11][12]

Core Insights - The Federal Reserve's Waller indicates that issues related to labor supply are masking the underlying weakness in labor demand [1] Group 1 - Labor supply problems are currently overshadowing the signs of weak labor demand [1]