Small Business Growth Continues with 29,500 New Jobs Added in August 2026
Small Business Growth Continues with 29,500 New Jobs Added in August 2026
In the latest Gusto Small Business Jobs Report, it has been confirmed that America's small businesses have added an estimated 29,500 net new jobs in August 2026. This achievement marks the seventh consecutive month of job growth, even though the pace showed a significant slowdown compared to previous months.
A Steady Trend Amidst Slowdown
Despite the dip in growth rate, the overall hiring trend remains positive. According to Nich Tremper, Senior Economist at Gusto, "August looks like a slow down, not a pullback." This indicates that while the number of new hires decreased, the underlying demand for employment is still robust. All four U.S. regions and every company size tier managed to create new jobs during this period, showcasing the resilience of small businesses in the face of economic fluctuations.
Sector Insights
The data reveals that healthcare and social assistance led all sectors with a remarkable 16,300 net new hires. Other sectors that contributed to job growth include:
- - Construction: +4,200 net hires
- - Administrative and Support Services: +2,100 net hires
- - Other Services: +1,900 net hires
However, it is worth noting that six of the 19 sectors experienced net losses, with hospitality facing the most significant declines. The report highlights that mining, utilities, and transportation also saw job losses, further emphasizing the challenges within certain industries.
Regional Breakdown of Hiring
Each U.S. region posted positive hiring numbers as follows:
- - South: +14,200
- - West: +6,600
- - Midwest: +4,500
- - Northeast: +4,200
The South remained the top performer, although it recorded a decline in growth compared to the previous month. Notably, the West saw a marginal increase in wage growth, which was quite encouraging for small businesses operating in that region.
Company Size Contributions
Job growth was evenly distributed across various company sizes in August. The contributions included:
- - 5-9 employees: +9,400 net hires
- - 10-19 employees: +9,200 net hires
- - 20-49 employees: +8,000 net hires
- - 1-4 employees: +2,900 net hires
Such consistent growth across all company sizes reflects a collective effort to expand the workforce, although the numbers indicate a slight cooling trend compared to earlier months.
Wage Growth Continues
Despite a slowdown in hiring, wages for small business employees have seen a notable increase. The average hourly earnings rose to $37.31, marking a 3.9% increase from the previous year. Additionally, starting pay for new hires climbed to approximately $25.78 per hour, translating to a 3.2% hike year-over-year.
Methodology Behind the Report
The Gusto Small Business Jobs Report analyzes anonymized payroll data from a diverse sample of around 100,000 small businesses with 1 to 49 employees. This gives a comprehensive overview of the U.S. small business landscape, ensuring the accuracy and representation of the findings.
Conclusion
As we analyze the August numbers, it’s clear that America’s small businesses continue to play a vital role in the economy. Although hiring has cooled slightly, the upward trend in job creation remains promising. With a focus on growth in wages and hiring across various sectors, the resilience of small businesses suggests that they will continue to contribute positively to the job market in the coming months.
Topics Business Technology）
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