Gusto, the leading partner for small businesses, today released its June 2026 Small Business Jobs Report, showing America's small businesses added an estimated 32,900 net new jobs on a seasonally adjusted basis last month. June's gain marks the fifth consecutive month of positive net hiring following January's dip, though the pace moderated from spring's elevated levels, coming in below the 12-month average of +45,900.

Even as the headline cooled, the breadth of hiring remained resilient. Fourteen of 19 sectors posted positive net hires, small businesses in all four U.S. regions added jobs, and every company size tier stayed in positive territory — a sign that while the magnitude faded, the small business labor market continued to expand broadly.

"June was a step back from the spring pace, but we've now seen five straight months of positive small business job growth," said Nich Tremper, Sr. Economist at Gusto. "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."

The Big Picture

At +32,900, June's seasonally adjusted net hires came in below the 12-month average of +45,900, marking the softest month of the five-month positive run. On a seasonally adjusted basis, small businesses made 2.53 million hires against 2.50 million terminations in June. Compared with the same month a year ago, hires were up +1.0% while terminations rose +3.2%, a sign that churn is running a touch hotter even as net job creation slows.

Here's how June compares to the recent trend:

• February 2026: +61,900 net hires

• March 2026: +76,500 net hires

• April 2026: +54,900 net hires

• May 2026: +60,500 net hires (revised from initially reported +83,900)

• June 2026: +32,900 net hires

Note: Prior months were revised with this release. May's net gain, initially reported at +83,900, was revised down to +60,500, and February was revised to +61,900. As always, the most recent months are subject to revision as additional payroll data arrives.

Sector Highlights

Health Care and Social Assistance led all sectors with +14,300 net hires, though the pace eased from May's +17,300. Construction added +6,100, extending its run to five consecutive months among the top sectors. Professional, Scientific, and Technical Services contributed +3,800.

The most notable reversal came in hospitality: Accommodation and Food Services, which added +5,500 in May, swung to a loss of –1,500 in June — a key driver of the softer headline. In all, 5 of 19 sectors posted net job losses.

• Health Care and Social Assistance: +14,300 net hires

• Construction: +6,100 net hires

• Professional, Scientific, and Technical Services: +3,800 net hires

• Administrative and Support Services: +2,300 net hires

• Finance and Insurance: +2,200 net hires

• Other Services: +2,100 net hires

• Arts, Entertainment, and Recreation: +1,200 net hires

• Wholesale Trade: +1,200 net hires

• Educational Services: +800 net hires

• Utilities: +600 net hires

Regional Breakdown

All four U.S. regions posted positive net hires in June, though gains were smaller across the board than in spring. The South held its position atop all regions for another month at +10,900, though well off the +19,500 pace it set in May. The Northeast came in second at +8,800, with the West close behind at +8,300. The regional picture cooled in step with the national headline — broad, but more measured.

• South: +10,900 net hires

• Northeast: +8,800 net hires

• West: +8,300 net hires

• Midwest: +4,900 net hires

Company Size Breakdown

All four company size tiers posted positive net hires in June, though each pulled back from May's stronger pace — a uniform cooling rather than weakness concentrated in any one segment. Larger small businesses continued to carry the bulk of net hiring, with firms in the 20–49 employee range leading at +15,100.

• 20–49 employees: +15,100 net hires

• 5–9 employees: +9,400 net hires

• 10–19 employees: +5,200 net hires

• 1–4 employees: +3,200 net hires

Looking Ahead

Five consecutive months of positive net hiring confirm that the small business labor market is still expanding — but June's moderation suggests the spring surge was a high-water mark rather than a new baseline. With churn ticking up and hospitality pulling back, the pace of gains may slow further in the months ahead. The durability of health care, the persistence of construction gains, and broad positive participation across all regions and company sizes remain encouraging signals as the summer labor market settles in.