A new report has revealed that US small businesses added an estimated 28,000 jobs in September, marking the eighth consecutive month of positive hiring.
According to the Gusto Small Business Jobs and Pay Report, September’s figure increased from August, which was revised down to 18,500 jobs from an initial estimate of 29,500. Despite the rise, hiring remained below the 12-month average of 34,000, suggesting businesses are continuing to take a more cautious approach to recruitment.
The increase was spread across much of the small business economy, with 14 of 19 sectors adding jobs, alongside all four US regions and every company size category. Health Care and Social Assistance led hiring for the eighth consecutive month, adding 13,000 jobs, followed by Other Services with 3,400 and Construction with 2,500.
Smaller businesses continued to account for a significant share of new hiring, with companies employing between five and nine people adding 13,000 jobs in September. Businesses with 20 to 49 employees added 6,000 jobs, while those with 10 to 19 employees added 5,200 and firms with one to four employees added 3,600.
The South recorded the largest increase among US regions, adding 13,000 jobs in September, up from 9,300 in August. The West followed with 7,500 new jobs, while the Midwest added 4,300 and the Northeast added 3,000.
Pay also continued to rise, with average hourly earnings among small business employees increasing by 4% year-on-year to $37.40. Starting pay for newly hired workers increased by 3.1% to $25.80 an hour.
Wage growth was strongest in the West, where average hourly earnings increased by 5.3% over the year to $42 an hour. The Midwest recorded the lowest wage growth at 3%, while average hourly earnings reached $32.91.
Nich Tremper, Senior Economist at Gusto, said: “Hiring picked up a little in September, but the bigger story is who’s doing the hiring. For the second month running, it’s the smallest employers — companies with just five to nine employees — adding more jobs than any other size tier.”
Tremper added that small business owners were becoming more selective about hiring than earlier in the year, while continuing to increase pay as they looked to retain workers.
The figures are based on anonymised payroll data from a sample of around 100,000 small businesses across the US, with between one and 49 employees.
