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Gusto's Small Business Jobs Report: A Look at May 2026's Employment Surge

In an encouraging sign for the U.S. economy, Gusto's Small Business Jobs Report revealed that small businesses added an impressive 83,900 jobs in May 2026. This notable figure represents a seasonally adjusted increase and marks the fourth consecutive month of job creation, indicating a significant upswing in small business employment post-pandemic.

This report demonstrates that the job creation phenomenon is not isolated to a few sectors, but rather a widespread revival, with 17 out of 19 industries reporting positive net hires. Gusto's data reveals that this growth is consistent across all U.S. regions and various company sizes, demonstrating a robust overall trend within the small business labor market.

Sector Contributions to Job Growth

The health care sector led the charge, boasting the highest number of new hires for the month with an additional 20,200 employees, a notable increase from the previous month’s 16,900. Following closely behind, the accommodation and food services sector saw a gain of 14,400 jobs, driven by summer staffing needs. Other top-performing sectors included administrative and support services (+8,700), retail trade (+8,400), and construction (+8,000), the latter of which has maintained its position as a strong contributor for four consecutive months. Only two sectors – management of companies (-400) and utilities (-200) – experienced job losses.

Regional Insights

When broken down by region, the South dominated as the leading area for new employment, adding 36,200 jobs. This trend of strength in the Southern labor market is becoming established. The Northeast followed, contributing 22,400 jobs, while the West recovered from a previous decline by adding 13,000 positions. The Midwest added a commendable 12,300 jobs, further emphasizing the nationwide momentum.

Growth Across Company Sizes

Among the varying sizes of businesses, companies with 20-49 employees were the frontrunners, contributing 36,400 new jobs. However, the growth was not limited to just larger firms; small businesses in the 1-4 employee range also made impressive gains, adding 8,800 jobs and showing resilience over several months. This uptick demonstrates a broadening confidence in the small business sector, from microenterprises to relatively larger firms.

Looking Ahead

As we approach the busy summer season, analysts suggest that the trends in hospitality and healthcare, along with the overall positive momentum across diverse sectors and business sizes, bodes well for continued job growth. Nich Tremper, a Senior Economist at Gusto, commented that the level of participation across various industries points to a healthily expanding small business labor market.

In conclusion, the Gusto Small Business Jobs Report not only highlights a significant increase in employment figures for May 2026 but also showcases a hopeful outlook for small businesses as they continue to contribute positively to job creation in the United States. This report collects data from over 500,000 small businesses across the country, providing a real-time snapshot of hiring trends, and is essential for understanding the dynamics of the U.S. economic recovery.

For a detailed breakdown of these statistics, visit Gusto's website and explore more about small business hiring trends.