Small Businesses Add 28,000 Jobs in September as Micro-Firms Lead Hiring

The latest Gusto Small Business Jobs and Pay Report shows a rebound from August, which saw a downwardly revised gain of 18,500 positions. Despite this recovery, the monthly performance remains below the 12-month average of 34,000 jobs, signaling a cooler labor market. Growth was widespread, touching 14 of 19 sectors and all four U.S. geographic regions.

Health Care and Social Assistance dominated sector performance for the eighth month in a row, contributing 13,000 new roles. Meanwhile, company size dynamics have shifted: businesses with five to nine employees led the hiring surge for the second consecutive month, outpacing larger tiers. Nich Tremper, a senior economist at Gusto, noted that owners are increasingly selective, choosing to pay a premium to secure talent rather than aggressively chasing rapid expansion.

Wage growth continues to outpace inflation, with average hourly earnings rising 4.0% year-over-year to $37.40. Regional disparities persist, however; the West reported the most significant wage growth at 5.3%, with average hourly pay reaching $42.00. Conversely, the Midwest recorded the lowest wage growth at 3.0% and the lowest average earnings at $32.91 per hour. Starting pay for new hires rose 3.1% nationwide, reaching $25.80 an hour.