Rochester, N.Y. -- The tight labor market continues to positively impact wage growth, according to data from Paychex's Small Business Employment Watch. Hourly earnings grew 3.11% among employees of small businesses, the highest level since reporting began in 2011. Weekly earnings continue to grow, accelerating 3.75% in November. Essentially unchanged from the previous month, the national jobs index moderated 0.03%, remaining above 98.

"Wage increases are finally beginning to reflect the tight labor market for small businesses," said James Diffley, chief regional economist at IHS Markit.