#United States #San Francisco #Small Businesses #Jobs #Gusto

Introduction

September has proven to be a positive month for America's small businesses, with 28,000 new jobs added according to the latest Gusto Small Business Jobs and Pay Report. This marks the eighth consecutive month of job growth, showcasing a robust resilience amidst varying economic conditions.

Hiring Landscape

Despite a slight slowdown in hiring compared to earlier months, the net increase in September indicates stability in the labor market. In August, the numbers were adjusted, showing a lower hiring rate of 18,500 jobs rather than previously estimated figures, emphasizing the need for accuracy in job growth reporting. September's hiring reflects a continuing trend, albeit at a cooler pace, below the twelve-month average of 34,000 jobs per month.

Nich Tremper, Senior Economist at Gusto, indicated that while hiring has gained momentum, the more significant narrative revolves around who is doing the hiring. For the second month in succession, the most significant job additions came from the smallest employers—those with five to nine employees, who have shown an eagerness to expand their teams. This sector has outpaced other size categories, underscoring the integral role of micro-businesses in job growth.

Sector and Regional Analysis

The report also highlighted a diverse hiring landscape, with jobs added across 14 of the 19 sectors tracked. Key sectors driving job creation include:

• - Health Care and Social Assistance: Leading with 13,000 new hires
• - Other Services: Following closely with 3,400 hires
• - Construction: Contributing an additional 2,500 jobs

Geographically, all four U.S. regions recorded positive net hires. The South topped the chart with 13,000 new jobs, while the West followed with 7,500. Notably, the West also experienced the highest wage growth, with small business pay rising 5.3% year-over-year, reaching $42.00 per hour, thus highlighting disparities in wage growth across regions.

Wage Growth Trends

Wage growth remains robust, as Average Hourly Earnings climbed to $37.40, reflecting an annual increase of 4%. This stable growth rate signifies that small businesses are keeping pace with inflation. Moreover, the starting pay for newly hired employees rose 3.1%, reaching $25.80 an hour, indicating a competitive job market that acknowledges the value of skilled labor.

Company Size Impact

September has been especially favorable for micro-businesses, those with five to nine employees, which saw a significant contribution to job growth. The other size categories also reported net hires:

• - 20–49 employees: 6,000 new positions
• - 10–19 employees: 5,200 jobs added
• - 1–4 employees: 3,600 new hires

This broad-based hiring trend across various sizes highlights a consistent demand for labor despite economic fluctuations, suggesting that small businesses are strategically choosing to expand their workforce while maintaining financial prudence.

Conclusion

As we head deeper into 2026, the Gusto Small Business Jobs and Pay Report provides a hopeful outlook on small business dynamics in the U.S. The blend of steady job additions, robust wage growth, and significant contributions from micro-businesses paints an encouraging picture for the economy. The continued performance of small businesses not only supports individual livelihoods but also sustains the broader economy, making them a cornerstone of American job creation.

About Gusto

Gusto is recognized as a primary partner for small businesses, offering vital assistance in managing payroll, health benefits, and more. As Gusto services over 500,000 small businesses, their mission remains focused on fostering growth and sustainability in the small business sector.