#United States #San Francisco #Gusto #June 2026 #Small Business Jobs

Gusto Small Business Jobs Report Overview

Gusto, a prominent partner for small businesses, released its latest findings in the June 2026 Small Business Jobs Report, indicating that America’s small businesses added approximately 32,900 net new jobs in June. This development marks the fifth consecutive month of positive net hiring, showcasing the resilience of the small business sector despite a slight slowing in hiring momentum compared to earlier months.

Hiring Trends and Observations

The data reveals that June's job growth, while lower than the 12-month average of +45,900, highlights a consistent growth pattern. The report found that 14 out of 19 employment sectors reported positive net hiring. Furthermore, small businesses across all four U.S. regions contributed to job growth, demonstrating broad expansion in the labor market.

According to Nich Tremper, a Senior Economist at Gusto, “June was a step back from the spring pace, but we've now seen five straight months of positive small business job growth. Health care surged ahead, leading the job gains.” This indicates that while growth rates have cooled, the overall labor market remains healthy and evolving.

Here’s a comparison of the recent hiring trends based on net new jobs:

• - February 2026: +61,900
• - March 2026: +76,500
• - April 2026: +54,900
• - May 2026: +60,500 (revised down from +83,900)
• - June 2026: +32,900

Notably, health care and social assistance sectors thrived, contributing 14,300 new positions. The construction sector followed closely with an addition of 6,100 jobs, while the Professional, Scientific, and Technical Services sector added 3,800 positions. However, the hospitality sector faced a downturn, transitioning from a gain of 5,500 jobs in May to a loss of 1,500 jobs in June, marking a significant shift in this area.

Job Gains by Sector

The job growth in various sectors illustrates a diverse hiring landscape:

• - Health Care and Social Assistance: +14,300 net hires
• - Construction: +6,100 net hires
• - Professional, Scientific, and Technical Services: +3,800 net hires
• - Administrative and Support Services: +2,300 net hires
• - Finance and Insurance: +2,200 net hires
• - Other Services: +2,100 net hires
• - Arts, Entertainment, and Recreation: +1,200 net hires
• - Wholesale Trade: +1,200 net hires
• - Educational Services: +800 net hires
• - Utilities: +600 net hires

Despite the overall positive trajectory, five out of the 19 sectors faced job losses in June, underscoring the volatility within certain industries.

Regional Insights

Every U.S. region experienced positive job gains in June, with the South leading at +10,900 jobs, albeit down from the previous month’s +19,500. The Northeast and West regions also performed well, reporting net increases of +8,800 and +8,300 respectively. The Midwest region, however, saw the fewest gains at +4,900 net hires.

Company Size Contributions

All company size segments added jobs in June, with larger small businesses (20–49 employees) leading with a net gain of +15,100. Smaller enterprises also contributed positively to the overall employment landscape:

• - 20-49 employees: +15,100 net hires
• - 5-9 employees: +9,400 net hires
• - 10-19 employees: +5,200 net hires
• - 1-4 employees: +3,200 net hires

What Lies Ahead

The continuous three-month trend of positive job additions indicates a persistence in the small business labor market's growth. However, the moderation noted in June suggests that the peak of the hiring burst seen in spring may not set a new standard going forward. With an increase in job terminations and the hospitality sector retracting, experts believe that while the market remains strong, a potential slowdown could occur in the latter half of the year.

In conclusion, the Gusto Small Business Jobs Report highlights a mixed but optimistic view of the employment landscape for small businesses, with health care and construction sectors propelling growth despite fluctuations in hospitality and overall hiring numbers.