Gusto Small Business Jobs Report: Small Businesses Add 83,900 Jobs in May, Extending Four-Month Streak of Broad-Based Gains

Health care leads all sectors with 20,200 net hires; 17 of 19 sectors, all four U.S. regions, and every company size tier post positive results

SAN FRANCISCO, June 3, 2026 /PRNewswire/ -- Gusto, the leading partner for small businesses, today released its May 2026 Small Business Jobs Report, showing America's small businesses added an estimated 83,900 net new jobs on a seasonally adjusted basis last month. May's gain marks the fourth consecutive month of positive net hiring, extending the strongest four-month stretch of small business job creation since last summer and comfortably exceeding the 12-month average of +52,600.

The breadth of May's gains was equally notable. A remarkable 17 out of 19 sectors posted positive net hires, all four U.S. regions added jobs, and every company size tier was in positive territory — a level of consistency across industries, regions, and company sizes that points to a small business labor market with real momentum heading into peak summer hiring season.

"Small businesses have now added jobs for four straight months, and May showed that this isn't a story about one or two sectors carrying the load — it's broad," said Nich Tremper, Sr. Economist at Gusto. "Health care, hospitality, construction, and retail are all growing. That kind of widespread participation is what a healthy small business labor market looks like, and it's an encouraging sign heading into summer."

Sector
Health Care and Social Assistance led all sectors with +20,200 net hires, accelerating from +16,900 in April and continuing a streak of outsized gains. Accommodation and Food Services posted a strong +14,400 as summer staffing ramps up, while Administrative and Support Services added +8,700. Retail Trade (+8,400) and Construction (+8,000) rounded out the top five, with Construction posting its fourth consecutive month among the leading sectors. Only two sectors saw job losses: Management of Companies (–400) and Utilities (–200).

Regional
Regionally, the South led for another month at +36,200 net hires, continuing what has become a sustained run of labor market strength. The Northeast followed with +22,400, the West rebounded from a soft April to add +13,000, and the Midwest contributed +12,300.

Company Size
On the company size front, firms in the 20–49 employee range led with +36,400 net hires, but the bigger story was momentum spreading into the middle tiers. Firms with 5–9 and 10–19 employees both accelerated sharply, and even the smallest businesses (1–4 employees) posted +8,800 — stringing together several consecutive months of positive hiring, a sign that confidence has meaningfully broadened across the small business economy.

Looking ahead, the acceleration in hospitality, the durability of health care gains, and broad participation across company sizes and regions all point to continued momentum as we head into summer.

For a full breakdown of the stats over time, click here.

About the Gusto Small Business Jobs Report
The Gusto Small Business Jobs Report provides a real-time view of hiring among the 500,000+ U.S. small businesses on Gusto. All figures are based on anonymized payroll data, statistically weighted to be nationally representative by size, industry, region, and company age, and seasonally adjusted using the U.S. Census Bureau's X-13ARIMA-SEATS methodology.

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.

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SOURCE Gusto, Inc.