Small businesses with fewer than 50 employees added an estimated 38,000 net jobs in October, the ninth consecutive monthly gain, according to payroll processor Gusto. Pay rose 3.9% from a year earlier. It is a steady picture next to the national data, which has been weaker and was revised down last month.
The short answer
Gusto estimates small businesses (1–49 employees) added 38,000 jobs in October 2026, seasonally adjusted, above the 12-month average of 34,000. Sixteen of 19 sectors added jobs and average hourly earnings rose 3.9% to $37.50. Health care and social assistance led with 13,000 jobs.
What happened
Gusto’s November 3 report shows the following, as stated in the release:
| Measure | October 2026 |
|---|---|
| Net new small-business jobs | 38,000 (seasonally adjusted) |
| September (revised) | 27,000 |
| 12-month average | 34,000 |
| Sectors adding jobs | 16 of 19 |
| Average hourly earnings | $37.50, up 3.9% year over year |
| New hire pay index | up 3.0% year over year |
Hiring was broad. Health care and social assistance led the sectors with 13,000 net hires. All four U.S. regions added jobs, and so did every company-size tier. Gusto said hiring picked up for a second month and ran above the 12-month average.
Gusto draws on anonymized payroll data from a stratified random sample of about 100,000 small businesses and weights it to national business distributions using BLS and Census data.
Why it matters
This is one payroll provider’s sample, not a government count. But it moves in a different direction than the broad data we reported on. The government’s September report showed only 29,000 jobs and a negative July, and Paychex’s index showed owners adding hours instead of headcount. Gusto’s small-business sample is steady at roughly 25,000 to 40,000 a month.
What this means for small business owners
- Wage pressure is real near 4%. If you hire, budget for average pay near $37.50 an hour, and assume new-hire pay is rising about 3% a year.
- Hiring competition is strongest in health care. If you compete for those workers, expect higher offers.
- Update payroll tax setup before adding staff. New hires mean new withholding, state accounts and, in Washington, Paid Leave and WA Cares reporting.
- Use several indicators. Gusto, Paychex, ADP and BLS differ in sample and timing. Do not plan on one.
Key stat: 38,000 net jobs in October, against a 12-month average of 34,000 (Gusto, Nov. 3, 2026).
FAQ
How many jobs did small businesses add in October 2026? About 38,000, seasonally adjusted, per Gusto.
Who is counted? Businesses with 1 to 49 employees in Gusto’s payroll sample.
How fast are wages growing? Average hourly earnings rose 3.9% year over year to $37.50.
Is this the government’s number? No. It is Gusto’s estimate from its payroll data.
The bottom line
Small-business hiring is steady, not surging, and wages are still rising near 4%. Build hiring budgets on that pace.
Last updated: November 3, 2026.
