#United States #San Francisco #Small Business #job growth #Gusto

Small Business Employment Growth in July 2026

In the most recent Gusto Small Business Jobs Report, the data revealed that American small businesses added approximately 38,200 net new jobs in July on a seasonally adjusted basis. This achievement marks the sixth consecutive month of job growth, a hopeful sign for the small business sector. The figure aligns closely with June's increase of 40,800, underscoring a consistent trend in small business hiring throughout the summer months.

A Strong Showing Across Sectors

July's jobs report stood out not just in numbers but in its breadth, with 15 out of 19 industry sectors experiencing positive net hires. Not surprisingly, healthcare and social assistance once again topped the list, contributing 15,100 jobs — more than a third of the overall increase. Following closely were the construction sector, which saw an addition of 4,800 jobs, and professional, scientific, and technical services with an increase of 3,900.

While the accommodation and food services sector is experiencing a decline, marking a second consecutive month with a loss of around 1,000 jobs, it remains crucial to note that this does not significantly alter the positive trajectory of overall hiring.

Regional Highlights

Every region across the United States contributed positively to job additions, particularly the South, which led with 12,600 new hires. The Northeast and Midwest followed, providing 10,800 and 8,700 jobs, respectively. The West coast, too, joined in on the act, adding 6,100 positions. This collective growth showcases a robust job recovery across various geographical regions, reinforcing the notion that small businesses are at the forefront of this economic momentum.

Company Size Insights

When examining company size, all four tiers reported positive net hires in July. Firms with 20-49 employees were the most prolific, adding 12,600 jobs, while the smaller categories also demonstrated encouraging growth, suggesting a widespread increase in labor demand across various business sizes.

• - 1–4 employees: +5,700 net
• - 5–9 employees: +11,200 net
• - 10–19 employees: +8,700 net
• - 20–49 employees: +12,600 net

This broad-based job growth is a clear indicator that small businesses are not only recovering but are actively investing in their workforces to ensure stability and sustainability.

Gusto’s Role in Small Business Dynamics

Gusto continues to be a pivotal partner for small businesses in this dynamic landscape, providing essential support for diverse operational needs like payroll processing, healthcare benefits, and compliance management. Serving over half a million small businesses across the United States, Gusto's mission revolves around strengthening the small business economy with innovative technology solutions and a commitment to stellar service.

Conclusion

The outlook for small businesses remains encouraging as job growth continues steadily into July 2026. As firms across all sectors and sizes continue to hire, it's evident that small businesses are recovering and thriving. With a leadership role from the healthcare sector and a strong performance across regions, the overall narrative tells a tale of resilience, revitalization, and a promising horizon for the small business job market.

Gusto’s data illustrates that stability within the small business sector is paramount, as the nation witnesses these consistent gains. The journey toward economic recovery is ongoing, and small businesses are at the heart of that transformation.