Gusto Reports 32,900 Small Business Jobs Added

Gusto reported that U.S. small businesses added an estimated 32,900 net jobs in June 2026, a fifth consecutive month of positive hiring. The result was below the 12-month average of 45,900 net hires and lower than the stronger pace recorded during the spring. Health Care and Social Assistance led sector gains with 14,300 net hires, while all four U.S. regions and all company size tiers remained positive. Gusto’s report draws on anonymized payroll data from small businesses with fewer than 50 employees.

Hiring Slows From Spring Levels

Small businesses made 2.53 million hires and recorded 2.50 million terminations on a seasonally adjusted basis in June. Hires were up 1.0% from June 2025, while terminations rose 3.2% year over year. Gusto revised May’s reported gain from 83,900 net hires to 60,500, and revised February’s figure to 61,900.

The recent monthly results were 61,900 net hires in February, 76,500 in March, 54,900 in April, 60,500 in May, and 32,900 in June.

“June was a step back from the spring pace, but we've now seen five straight months of positive small business job growth. All four regions added jobs, every company size tier stayed positive, and health care continued its run at the top. Small businesses continued their nearly half-year expansion through hiring in June.”

Health Care Leads Sector Gains

Fourteen of 19 sectors recorded positive net hiring in June. Health Care and Social Assistance added 14,300 jobs, followed by Construction with 6,100 and Professional, Scientific, and Technical Services with 3,800. Construction has ranked among the leading sectors for five consecutive months.

Accommodation and Food Services moved from 5,500 net hires in May to a loss of 1,500 in June. Five sectors posted net job losses during the month.

Every Region Adds Jobs

The South led regional hiring with 10,900 net hires, followed by the Northeast at 8,800, the West at 8,300, and the Midwest at 4,900. Each region added jobs, although gains were lower than in May.

Businesses with 20 to 49 employees posted the largest increase, adding 15,100 net jobs. Companies with five to nine employees added 9,400, those with 10 to 19 employees added 5,200, and firms with one to four employees added 3,200.

What Small Businesses Can Watch

Gusto’s June report shows broad hiring across industries, regions, and employer sizes, even as the overall pace cooled. For employers, the figures point to continued hiring activity in health care and construction, while the pullback in hospitality and the rise in terminations show a more measured summer labor market.