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

2026-06-03 · Source: The AI Journal · Field: Business & Management — Entrepreneurship & Start-ups, Human Resources & Workforce Development · Depth: Fundamental Awareness, short

Summary

Gusto's May 2026 Small Business Jobs Report indicates that America's small businesses added an estimated 83,900 net new jobs last month, marking the fourth consecutive month of positive net hiring. This extends the strongest four-month stretch of small business job creation since last summer, comfortably exceeding the 12-month average of +52,600. The gains were broad-based, with 17 of 19 sectors, all four U.S. regions, and every company size tier posting positive results. Health Care and Social Assistance led all sectors with +20,200 net hires, followed by Accommodation and Food Services (+14,400), Administrative and Support Services (+8,700), Retail Trade (+8,400), and Construction (+8,000). Regionally, the South led with +36,200 net hires, while firms with 20–49 employees led company size tiers with +36,400. The report utilizes anonymized payroll data from over 500,000 U.S. small businesses, statistically weighted and seasonally adjusted.

Key takeaway

For small business owners planning summer hiring, this report confirms a robust and broad-based labor market. You should feel confident in expanding your teams, especially if operating in health care, hospitality, construction, or retail. The sustained growth across regions and company sizes, including smaller firms, suggests a favorable environment for talent acquisition. Consider accelerating your hiring plans to capitalize on this positive momentum and secure necessary staff.

Key insights

Small business job growth is broad-based across sectors, regions, and company sizes, indicating a healthy labor market.

Principles

• Widespread participation signals a healthy labor market.
• Sustained regional strength drives overall growth.
• Momentum spreads into middle-tier firms.

Method

The report uses anonymized payroll data from 500,000+ U.S. small businesses, statistically weighted and seasonally adjusted via X-13ARIMA-SEATS methodology.

In practice

• Monitor health care and hospitality sectors.
• Track regional labor market strength.
• Observe hiring trends in 5-49 employee firms.

Topics

• Small Business Jobs
• Labor Market Trends
• Sectoral Employment
• Regional Hiring
• Gusto Report
• Payroll Data Analysis

Best for: Entrepreneur, Consultant, Policy Maker

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Editorial summary, takeaway, and curation by AIssential. Original article published by The AI Journal.