Main Street Health Report

Name: Main Street Health Report, August 2026
Creator: Homebase
License: https://creativecommons.org/licenses/by/4.0/

August 2026

Labor and wage stats

Every month we measure how small businesses are actually doing, from the timesheets of more than 150,000 of them: who is working, how many hours, what they are paid, and how that compares with the same month in previous years.

Employees working fell 2.6% month-over-month in August, a seasonal dip that leaves headcount down 6.3% versus January. The slowdown since 2024 looks structural, likely reflecting immigration policy curbing labor supply.

Download the PDF Email the data team See every monthly report

Hourly employees: 2M+
Small businesses: 150K+
Measured, not surveyed: Timesheet data

The owners of Antique Taco standing outside their restaurant

Main Street at a glance

The top things to know this month

+19.7%
Turnover jumped sharply in August, likely tied to the World Cup's end, while hiring's year-over-year decline continues to moderate. This is a sign the labor market may be stabilizing after a rocky 2025.
-2.6%
Employees working and hours worked each fell roughly 2.6% month-over-month, in line with typical August seasonality. Underlying growth rate keeps slowing, which is a trend that looks more structural and consistent with immigration policy tightening labor supply.
-10.5%
Business openings cooled across every region and industry in August. This is normal for the season, but the Midwest and Southwest saw the sharpest regional pullbacks, while entertainment led the industry decline.

What the data shows

Each finding below takes one measure of Main Street, participation, hours, wages, hiring and turnover, and compares August 2026 with the same month in the two years before it. Every chart is drawn from the figures, which are published alongside it for anyone who wants to check or reuse them.

Employees Working

Employees Working Lost Seasonal Steam

(Monthly 7-day average of “Employees Working”, indexed relative to January of respective year)

Line chart of employees working against each year's January, one line per year (2024, 2025 and 2026). 2026 ends down 6.3%.
Period	2024	2025	2026
Jan	0.0%	0.0%	0.0%
Feb	0.9%	(2.2%)	(1.0%)
Mar	1.0%	(1.3%)	(1.1%)
Apr	0.5%	(1.0%)	(1.4%)
May	0.0%	(2.3%)	(2.4%)
Jun	0.6%	(2.0%)	(1.6%)
Jul	(1.8%)	(3.6%)	(3.6%)
Aug	(4.0%)	(6.0%)	(6.3%)

Values are indexed to each year's January reference week.

Hours Worked

Hours Worked Mirrors Employment Slowdown

Hours worked fell 2.7% month-over-month in August, typical late-summer seasonality, leaving hours down 4.5% versus January. Like employment, 2026's pace is tracking almost exactly with 2025.

(Monthly 7-day average of “Hours Worked”, indexed relative to January of respective year)

Line chart of hours worked against each year's January, one line per year (2024, 2025 and 2026). 2026 ends down 4.5%.
Period	2024	2025	2026
Jan	0.0%	0.0%	0.0%
Feb	1.7%	(2.1%)	(0.2%)
Mar	2.9%	(0.2%)	0.1%
Apr	1.5%	(0.3%)	(0.5%)
May	1.8%	(0.9%)	(0.7%)
Jun	2.8%	(0.5%)	0.2%
Jul	0.1%	(1.8%)	(1.7%)
Aug	(2.0%)	(4.4%)	(4.5%)

Values are indexed to each year's January reference week.

Businesses Open, by region

Every Region Cooled, Midwest and Southwest Led Declines

The Midwest and Southwest tied for the steepest August pullback among the five regions (-2.1% month-over-month), while the Southwest has drifted furthest from its January baseline, down 17.7% year-to-date and the widest gap of any region.

(Month-over-month change in “Businesses Open”, by Homebase report region)

Map of month-over-month change by Census region, with the figures for 2024, 2025 and 2026. In 2026: Midwest down 2.1%, Northeast down 1.7%, Southeast down 1.4%, Southwest down 2.1%, West down 1.6%.
Region	2024	2025	2026
Midwest	−1.7%	−1.7%	−2.1%
Northeast	−1.6%	−1.8%	−1.7%
Southeast	−1.6%	−1.5%	−1.4%
Southwest	+3.0%	−1.9%	−2.1%
West	−1.5%	−1.5%	−1.6%

Values are indexed to each year's January reference week.

Businesses Open, by metro

Houston, Atlanta Led Metro-Level Declines

When looking at a metro-level, declines are particularly apparent in the large Southern metros like Houston (-0.4% month-over-month, -3.3% vs. January) and Atlanta (-0.4% month-over-month, -3.0% vs. January).

(Month-over-month change in “Businesses Open”, by MSA)

Table of the month-over-month change in businesses open for the eight largest metro areas, for 2024, 2025 and 2026, and each market's distance from its own January.
Market	2024	2025	2026	vs Jan
Los Angeles	−0.3%	−0.3%	−0.2%	−2.1%
New York	−0.5%	−0.4%	−0.4%	−2.7%
Dallas	−0.4%	−0.3%	−0.2%	−2.8%
Houston	+0.6%	−0.3%	−0.4%	−3.3%
Atlanta	−0.6%	−0.3%	−0.4%	−3.0%
Chicago	−0.5%	−0.4%	−0.2%	−2.4%
Miami	−0.3%	−0.4%	−0.3%	−3.0%
Seattle	−0.3%	−0.3%	−0.2%	−2.2%

Note 1. MSAs are the eight largest metro areas by current-year businesses-open sample in the latest reference week.

Note 2. Values are indexed to each year's January reference week.

Employees Working, by industry

Entertainment Led Broad Industry Pullback

Entertainment cratered 10.5% M/M, more than double the next-steepest decline. The rest of Main Street saw milder, seasonally normal softness that’s typical for late summer.

(Month-over-month change in “Employees Working”, by industry)

Beauty & Wellness
−3.9%
Aug MoM
Caregiving
−2.8%
Aug MoM
Entertainment
−10.5%
Aug MoM
Food, Drink, & Dining
−2.4%
Aug MoM
Hospitality
−4.6%
Aug MoM
Retail
−2.3%
Aug MoM
Home & Repair
−2.0%
Aug MoM
Medical / Veterinary
−1.8%
Aug MoM

Values are indexed to each year's January reference week.

Hourly Wages

Wage Growth Hit Its Fastest Pace Since January

Hourly wages rose 6.2% year-over-year in August, at a rate slightly cooler than a year ago, but the fastest pace since January.

(Percent change in average “Hourly Wages” across all jobs, relative to January 2022)

Line chart of average hourly wages against January 2022, monthly. It reaches 45.4% above the January 2022 level by August 2026.
Period	All industries
Jan'22	0.0%
Point 2	1.3%
Point 3	0.9%
Point 4	2.8%
Point 5	3.3%
Point 6	3.8%
Point 7	4.5%
Point 8	5.0%
Point 9	5.7%
Point 10	6.9%
Point 11	7.4%
Point 12	9.1%
Jan'23	11.3%
Point 14	13.0%
Point 15	13.3%
Point 16	14.0%
Point 17	14.9%
Point 18	15.5%
Point 19	16.3%
Point 20	16.3%
Point 21	18.4%
Point 22	19.9%
Point 23	21.3%
Point 24	22.4%
Jan'24	24.9%
Point 26	25.9%
Point 27	25.9%
Point 28	26.8%
Point 29	27.0%
Point 30	27.5%
Point 31	27.7%
Point 32	28.2%
Point 33	29.6%
Point 34	30.1%
Point 35	31.2%
Point 36	31.8%
Jan'25	33.9%
Point 38	35.5%
Point 39	35.9%
Point 40	36.1%
Point 41	35.8%
Point 42	36.4%
Point 43	37.1%
Point 44	36.9%
Point 45	38.9%
Point 46	40.2%
Point 47	40.9%
Point 48	41.5%
Jan'26	42.5%
Point 50	43.4%
Point 51	43.5%
Point 52	43.8%
Point 53	43.8%
Point 54	44.4%
Point 55	45.2%
Aug'26	45.4%

Data measures cumulative wage-rate change relative to January 2022.

Hourly Wages

Retail Led, Entertainment Lagged in Wage Growth

Retail posted the fastest hourly wage growth over the past year (5.9%), while entertainment lagged all other industries (4.5%).

(Average “Hourly Wages” across all jobs)

Line chart of the average hourly wage by sector, monthly since January 2022. In August 2026: Total $16.59, Food & Drink $14.15, Entertainment $15.05, Retail $15.89, Health Care $20.80, Professional Services $18.57.
Period	Total	Food & Drink	Entertainment	Retail	Health Care	Professional Services
Jan'22	$11.38	$10.33	$10.66	$10.92	$13.84	$12.37
Feb'22	$11.53	$10.57	$10.88	$11.10	$14.15	$12.80
Mar'22	$11.50	$10.50	$10.97	$11.00	$14.20	$12.97
Apr'22	$11.71	$10.78	$11.09	$11.08	$14.63	$13.21
May'22	$11.77	$10.90	$11.16	$11.14	$14.66	$13.34
Jun'22	$11.83	$10.97	$11.27	$11.33	$14.42	$13.53
Jul'22	$11.92	$11.02	$11.61	$11.44	$14.38	$13.37
Aug'22	$11.97	$11.00	$11.94	$11.48	$14.38	$13.57
Sep'22	$12.07	$11.12	$12.04	$11.50	$14.71	$13.93
Oct'22	$12.20	$11.22	$12.01	$11.74	$14.81	$13.86
Nov'22	$12.25	$11.28	$11.83	$11.80	$15.05	$13.97
Dec'22	$12.44	$11.36	$12.05	$12.20	$15.51	$14.29
Jan'23	$12.71	$11.56	$12.10	$12.64	$15.82	$14.11
Feb'23	$12.91	$11.60	$12.07	$12.82	$15.88	$14.25
Mar'23	$12.93	$11.67	$12.39	$12.67	$16.20	$14.28
Apr'23	$13.02	$11.75	$12.17	$12.64	$16.54	$14.53
May'23	$13.11	$11.80	$12.38	$12.90	$16.63	$14.92
Jun'23	$13.19	$11.89	$12.58	$12.89	$16.66	$14.74
Jul'23	$13.28	$11.94	$12.72	$13.11	$17.06	$14.70
Aug'23	$13.29	$11.95	$12.66	$13.16	$17.05	$14.91
Sep'23	$13.52	$12.11	$12.87	$13.41	$17.32	$15.08
Oct'23	$13.67	$12.18	$13.02	$13.52	$17.43	$15.12
Nov'23	$13.83	$12.32	$13.13	$13.64	$17.58	$15.29
Dec'23	$13.95	$12.38	$13.14	$13.72	$17.65	$15.60
Jan'24	$14.23	$12.57	$13.41	$13.89	$18.09	$15.75
Feb'24	$14.36	$12.64	$13.48	$14.08	$18.04	$15.94
Mar'24	$14.35	$12.68	$13.39	$14.11	$18.02	$15.70
Apr'24	$14.45	$12.75	$13.63	$14.16	$18.16	$15.50
May'24	$14.48	$12.73	$13.38	$14.15	$18.19	$15.49
Jun'24	$14.54	$12.83	$13.51	$14.20	$18.39	$15.00
Jul'24	$14.56	$12.82	$13.47	$14.25	$18.62	$15.13
Aug'24	$14.63	$12.86	$13.76	$14.33	$18.57	$15.59
Sep'24	$14.79	$12.90	$13.75	$14.42	$18.90	$15.71
Oct'24	$14.85	$12.92	$13.80	$14.49	$19.01	$15.67
Nov'24	$14.97	$12.96	$13.85	$14.53	$18.81	$15.94
Dec'24	$15.03	$13.01	$14.10	$14.51	$18.91	$16.57
Jan'25	$15.27	$13.12	$14.27	$14.85	$19.15	$17.56
Feb'25	$15.46	$13.25	$14.18	$14.98	$19.32	$17.71
Mar'25	$15.50	$13.33	$14.25	$14.95	$19.33	$17.54
Apr'25	$15.52	$13.26	$14.35	$14.98	$19.52	$17.67
May'25	$15.49	$13.31	$14.26	$14.92	$19.73	$17.56
Jun'25	$15.56	$13.41	$14.23	$14.94	$19.72	$17.55
Jul'25	$15.64	$13.48	$14.35	$15.01	$19.87	$17.57
Aug'25	$15.62	$13.45	$14.40	$15.01	$19.78	$17.70
Sep'25	$15.84	$13.59	$14.45	$15.17	$19.98	$17.83
Oct'25	$16.00	$13.68	$14.48	$15.30	$20.15	$17.89
Nov'25	$16.07	$13.71	$14.35	$15.42	$20.16	$17.86
Dec'25	$16.14	$13.80	$14.47	$15.42	$20.21	$18.00
Jan'26	$16.25	$13.85	$14.64	$15.57	$20.32	$17.97
Feb'26	$16.35	$13.88	$14.65	$15.65	$20.40	$18.12
Mar'26	$16.37	$13.94	$14.83	$15.66	$20.31	$18.03
Apr'26	$16.40	$13.94	$14.92	$15.67	$20.47	$18.11
May'26	$16.41	$13.96	$14.87	$15.64	$20.44	$18.05
Jun'26	$16.47	$14.07	$14.73	$15.76	$20.62	$18.08
Jul'26	$16.56	$14.16	$14.90	$15.89	$20.79	$18.30
Aug'26	$16.59	$14.15	$15.05	$15.89	$20.80	$18.57

Data measures average hourly wages for locations that utilized Homebase Payroll in the reporting month and same month a year before.

Jobs Added and Archived

Year-Over-Year: Hiring Neared a Turn while Turnover Ticked Up

While hiring's year-over-year decline narrowed to -2.1%, turnover moved the other way, up 7.2%. This likely reflects the World Cup's end rather than a lasting shift.

(Year-over-year change in “Number of Jobs Added” and “Number of Jobs Archived” across all jobs)

Line chart of the year-over-year change in jobs added and jobs archived, monthly. In August 2026: hiring down 2.1%, turnover up 7.2%.
Period	Hiring	Turnover
Aug'23	(5.8%)	6.2%
Sep'23	(3.3%)	8.3%
Oct'23	(3.0%)	11.1%
Nov'23	(2.8%)	(0.4%)
Dec'23	(2.4%)	(8.4%)
Jan'24	(5.3%)	(2.4%)
Feb'24	(4.3%)	(0.2%)
Mar'24	(0.3%)	1.8%
Apr'24	(0.5%)	7.6%
May'24	(1.4%)	5.9%
Jun'24	1.3%	(7.3%)
Jul'24	(3.9%)	(11.5%)
Aug'24	(1.3%)	(16.5%)
Sep'24	(2.3%)	(11.6%)
Oct'24	(6.0%)	(16.9%)
Nov'24	0.7%	(1.4%)
Dec'24	(8.6%)	(4.7%)
Jan'25	(7.1%)	(4.7%)
Feb'25	(5.4%)	(2.7%)
Mar'25	(5.7%)	(6.4%)
Apr'25	(7.0%)	(12.4%)
May'25	(3.8%)	(14.5%)
Jun'25	(5.3%)	(3.0%)
Jul'25	(5.0%)	(4.1%)
Aug'25	(3.1%)	(0.7%)
Sep'25	(6.8%)	(4.2%)
Oct'25	(3.6%)	(3.5%)
Nov'25	(6.7%)	(5.9%)
Dec'25	(2.4%)	(2.7%)
Jan'26	(2.6%)	(4.3%)
Feb'26	(3.6%)	(8.1%)
Mar'26	(1.4%)	(4.6%)
Apr'26	(2.3%)	(0.4%)
May'26	(2.2%)	(2.4%)
Jun'26	(2.7%)	(4.5%)
Jul'26	(1.7%)	(1.9%)
Aug'26	(2.1%)	7.2%

Data measures average monthly change in official employee roster jobs added and archived.

Number of Jobs Added

Hiring Spiked in August Amid Gradual Decline

Hiring rose 9.9% month-over-month in August. Year-over-year hiring is still down 2.1%, but that decline has been narrowing for several months, a signal the market may be nearing a floor.

(Monthly change in average “Number of Jobs Added” across all jobs)

Line chart of the month-over-month change in jobs added, one line per year (2024, 2025 and 2026). 2026 up 9.9% in August 2026.
Period	2024	2025	2026
Jan	0.0%	0.0%	0.0%
Feb	3.0%	4.9%	3.8%
Mar	0.7%	0.4%	2.8%
Apr	7.1%	5.6%	4.6%
May	2.8%	6.4%	6.5%
Jun	1.2%	(0.4%)	(0.9%)
Jul	(11.6%)	(11.3%)	(10.4%)
Aug	8.2%	10.3%	9.9%
Sep	0.0%	(3.7%)	no data
Oct	(9.1%)	(6.0%)	no data
Nov	1.4%	(1.8%)	no data
Dec	(11.7%)	(7.6%)	no data

Data measures average monthly change in official employee roster jobs created.

Number of Jobs Archived

Turnover Jumped Month-Over-Month, Possible World Cup Hangover

Turnover spiked 19.7% month-over-month in August, possibly tied to the World Cup's conclusion freeing up staff.

(Monthly change in average “Number of Jobs Archived” across all jobs)

Line chart of the month-over-month change in jobs archived, one line per year (2024, 2025 and 2026). 2026 up 19.7% in August 2026.
Period	2024	2025	2026
Jan	0.0%	0.0%	0.0%
Feb	(1.7%)	0.4%	(3.5%)
Mar	(0.1%)	(4.0%)	(0.3%)
Apr	9.6%	2.6%	7.1%
May	6.0%	3.4%	1.3%
Jun	(10.9%)	1.2%	(0.9%)
Jul	(4.8%)	(5.8%)	(3.3%)
Aug	5.7%	9.5%	19.7%
Sep	1.7%	(1.9%)	no data
Oct	(5.9%)	(5.2%)	no data
Nov	0.3%	(2.2%)	no data
Dec	(8.7%)	(5.6%)	no data

Data measures average monthly change in official employee roster jobs archived.

How we measure Main Street

The dataset is based on Homebase data gathered from more than 150,000 businesses and 2 million hourly employees active in the US on our platform, one of the largest and most trusted sources of real-time data on employment growth across the small business landscape.

Data from prior years uses similar cohort-based logic. Unless indicated otherwise, daily figures are calculated relative to the median value for that specific day for the baseline month, net of the first four days of the month.

Every chart on this page is drawn from the underlying figures rather than copied from the PDF. Those figures come from the same model the report is built on, which is refreshed each month as more timesheets land, so a value here may differ slightly from the one printed in the original slide. The PDF stays available above as published.

If you use any content from this report, please include a link to joinhomebase.com.

Measured from timesheets, not surveys

Hourly employees: 2M+
Small businesses: 150K+

Hours worked: Calculated from hours recorded in Homebase timecards.
Businesses open: Based on whether a business had at least one employee clock-in.
Employees working: The distinct number of hourly workers with at least one clock-in.
Wage inflation: The monthly change in average hourly wages at businesses that ran Payroll with Homebase in March 2026 and March 2025.

The story behind the numbers

Read the monthly analysis

Every month the team writes up what these figures mean for the people running the businesses behind them: what changed, what it costs, and what to do about it.

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