San Francisco – September 29, 2026 -- America's small businesses added 28,000 net new jobs in September on a seasonally adjusted basis, marking the eighth consecutive month of positive hiring, according to Gusto's Small Business Jobs and Pay Report.
September hiring accelerated from a downwardly revised August figure
The September gain improved on August's total, which was revised down to 18,500 net new jobs from an initial estimate of 29,500. July's figure was also revised lower, to 39,700 from 42,400. Despite the September uptick, hiring remained below the 12-month average of 34,000, with recent monthly totals of 38,000 in May, 36,000 in June and 39,700 in July.
Micro-businesses with 5-9 employees led hiring for a second straight month
Companies with five to nine employees added 13,000 net hires, outpacing the combined total of the 20-49 employee tier (6,000) and the 10-19 employee tier (5,200). The smallest tier, businesses with one to four employees, added 3,600 jobs. All four size tiers posted gains, indicating hiring remained broadly distributed even as the overall pace cooled.
Health Care and Social Assistance topped sector gains for an eighth straight month
The sector added 13,000 net hires in September, followed by Other Services at 3,400 and Construction at 2,500. Fourteen of 19 tracked sectors posted positive net hires, a narrower spread than earlier in 2026 but still representing a majority of the small business economy.
Western wages climbed 5.3% year-over-year, the fastest of any US region
All four US regions recorded positive net hires: the South led with 13,000, followed by the West at 7,500, the Midwest at 4,300 and the Northeast at 3,000. The South's total rose from 9,300 in August. Average hourly earnings in the West reached $42.00, the highest pay level and fastest wage growth of any region. The Northeast and South grew at roughly the national rate of 4.0%, while the Midwest trailed at 3.0% growth with the lowest regional average hourly earnings at $32.91.
National average hourly earnings rose 4.0% to $37.40
Wage growth has hovered around 4% for most of 2026, ranging between 3.9% and 4.6%. The New Hire Pay Index, tracking starting pay for newly hired workers, rose 3.1% year-over-year to $25.80 an hour. Gusto Senior Economist Nich Tremper said small business owners are not chasing growth as aggressively as earlier in the year but continue paying up to retain selective hires.