Gusto Small Business Jobs Report: Small Businesses Add 38,200 Jobs in July, Marking Sixth Straight Month of Growth
Broad-Based Gains Continue Across Every Region and Company Size as Healthcare Continues to Lead the Way
SAN FRANCISCO, Aug. 4, 2026 /PRNewswire/ -- America's small businesses added an estimated 38,200 net new jobs in July on a seasonally adjusted basis, according to the latest Gusto Small Business Jobs Report — the sixth consecutive month of positive hiring following January's dip. July's gain held roughly in line with June's 40,800 net new jobs, extending a small business labor market that has remained remarkably steady through the summer even as growth normalizes from the sharper gains seen earlier this spring.
The strength of July's report was its breadth: 15 of 19 sectors posted positive net hires, all four U.S. regions added jobs, and every company size tier stayed in positive territory for a sixth straight month. Health Care and Social Assistance again led all sectors with 15,100 net hires — more than a third of the month's total job growth — followed by Construction (+4,800) and Professional, Scientific, and Technical Services (+3,900). Hiring in Accommodation and Food Services cooled for a second straight month, the one notable exception in an otherwise steady month of gains.
"Six months in, this hiring streak keeps proving itself out — broad and consistent," said Nich Tremper, Senior Economist at Gusto. "Every region and every company size is still adding jobs. Healthcare continues to lead, and continued positive growth in construction and professional services shows an overall story of small business hiring now. Businesses are valuing stability with their workforces by moderately expanding their payrolls."
The Big Picture
July's net hires held steady with June's, continuing a pattern of consistent, if more moderate, growth compared to spring's sharper gains. Recent months: March (+76,500), April (+54,900), May (+38,200), June (+40,800). Prior months were revised with this release — June's initial estimate of +32,900 was revised up to +40,800, while May was revised down to +38,200 (from +60,500). As always, the most recent months are subject to revision as additional payroll data arrives.
Sector Breakdown
Health Care and Social Assistance led all sectors for a sixth straight month, followed by Construction and Professional Services. Top gainers:
- Health Care and Social Assistance: +15,100 net hires
- Construction: +4,800 net hires
- Professional, Scientific, and Technical Services: +3,900 net hires
- Wholesale Trade: +2,900 net hires
- Other Services: +2,800 net hires
- Finance and Insurance: +2,800 net hires
Fifteen of 19 sectors were in positive territory, matching June's breadth. Accommodation and Food Services was the lone standout on the downside, posting a second consecutive monthly decline of roughly 1,000 jobs after a strong start to the year — a trend worth watching, but not one that changed the broader picture of steady, wide-based hiring.
Regional Breakdown
All four U.S. regions posted positive net hires in July:
- South: +12,600 net hires
- Northeast: +10,800 net hires
- Midwest: +8,700 net hires
- West: +6,100 net hires
The South led all regions in July, followed by the Northeast, Midwest, and West. Gains were positive across every region, with the South and Northeast accounting for the largest share of the month's net job creation.
Company Size Breakdown
All four company size tiers posted positive net hires in July:
- 1–4 employees: +5,700 net hires
- 5–9 employees: +11,200 net hires
- 10–19 employees: +8,700 net hires
- 20–49 employees: +12,600 net hires
Larger small businesses continued to drive the bulk of net hiring, with firms in the 20–49 employee range leading. All four tiers stayed positive, with the smallest tiers adding more jobs than they did in June — a broad-based, steady month of gains.
Methodology
The Gusto Small Business Jobs Report tracks anonymized payroll data from a stratified random sample of roughly 100,000 small businesses across the United States with 1–49 employees, drawn from the 500,000+ companies on Gusto. To ensure the findings represent small businesses nationally, Gusto uses a two-stage weighting process: first, matching the national distribution of small businesses by industry, size, and region using U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages data as a benchmark; second, adjusting for company age using Census Bureau Business Dynamics Statistics data. All figures are seasonally adjusted using the U.S. Census Bureau's X-13ARIMA-SEATS methodology unless otherwise noted.
About Gusto
Gusto is the leading partner for small businesses, helping them with a wide variety of critical tasks, including payroll, health benefits, tax credits, compliance, 401(k), HR, and much more. Gusto serves over 500,000 small businesses across the US and is on a multi-decade journey to grow the small business economy with technology and heart.
SOURCE Gusto, Inc.
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