Healthcare and Social Assistance remained the primary engine of labor demand, contributing 16,300 new positions. Construction and administrative services followed, though the broader landscape showed signs of fatigue. Six of 19 tracked sectors reported net losses, including hospitality, mining, and transportation, representing the narrowest breadth of expansion observed during the current streak.
Small Business Hiring Cools to Seven-Month Low
U.S. small businesses added 29,500 net new jobs in August, marking the seventh consecutive month of growth but signaling a distinct deceleration in momentum. While hiring remains positive across all regions and company sizes, the pace of expansion has slipped below the 12-month average as businesses shift toward a more selective approach.
Despite the cooling in headcount growth, wage pressure persists. Average hourly earnings climbed to $37.31, a 3.9% increase over the previous year, while starting pay for new hires rose 3.2% to $25.78 per hour. According to Nich Tremper, Gusto’s senior economist, the data suggests a measured adjustment rather than a retreat. Regional performance remains anchored by the South, which added 14,200 jobs, while the West led the nation in wage growth with a 5.1% year-over-year increase.
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