Homebase
Get started
Sign inGet started
← All Main Street Health Reports

Main Street Health Report

December 2025

Labor and wage stats

Every month we measure how small businesses are actually doing, from the timesheets of more than 100,000 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 0.9% month-over-month in December 2025, steeper than December 2024 (-0.4%) but less severe than December 2023 (-1.4%). Combined with November’s -2.7% drop, staffing declined 3.6% across the last two months, marking the largest Nov–Dec pullback of the past three years.

Download the PDFEmail the data teamSee every monthly report
Hourly employees
2M+

Hourly employees

Small businesses
100K+

Small businesses

Measured, not surveyed
Timesheet data

Measured, not surveyed

The owners of Antique Taco standing outside their restaurant

Main Street at a glance

The top things to know this month

  • 0.9%

    Employees Working fell 0.9% month-over-month in December 2025, steeper than December 2024 (-0.4%) but less severe than December 2023 (-1.4%). Combined with November’s -2.7% drop, staffing declined 3.6% across the last two months, marking the largest Nov–Dec pullback of the past three years.

  • 0.6%

    Hours Worked declined 0.6% in December 2025, reversing December 2024’s near-flat change (+0.1%) and aligning more closely with December 2023 (-1.1%). The smaller decline follows November’s sharper -3.0% drop, indicating a moderation in year-end labor activity.

  • 1.9%

    The Midwest recorded the steepest regional declines, with Businesses Open down 1.9% and Employees Working falling 2.3%. Other regions saw more moderate pullbacks, with the West posting the smallest declines in both business activity (-0.5%) and employee activity (-0.5%).

What the data shows

Each finding below takes one measure of Main Street, participation, hours, wages, hiring and turnover, and compares December 2025 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

Workforce Participation Decline Extends Year-End Pullback

Employees Working fell 0.9% month-over-month in December 2025, steeper than December 2024 (-0.4%) but less severe than December 2023 (-1.4%). Combined with November’s -2.7% drop, staffing declined 3.6% across the last two months, marking the largest Nov–Dec pullback of the past three years.

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

202320242025(4.0%)(2.0%)0.0%2.0%4.0%1.4%2.1%(1.4%)Jan – Feb0.1%1.2%2.1%Feb – Mar1.5%0.3%1.1%Mar – Apr1.0%1.1%0.4%Apr – May1.8%2.5%1.9%May – Jun(0.4%)(1.9%)(0.6%)Jun – Jul(3.2%)(2.8%)(2.9%)Jul – Aug(3.8%)(3.1%)(3.5%)Aug – Sep(2.6%)(2.8%)(2.8%)Sep – Oct(1.8%)(2.3%)(2.7%)Oct – Nov(1.4%)(0.4%)(0.9%)Nov – Dec
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.9%.
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.9%.
Category202320242025
Jan – Feb1.4%2.1%(1.4%)
Feb – Mar0.1%1.2%2.1%
Mar – Apr1.5%0.3%1.1%
Apr – May1.0%1.1%0.4%
May – Jun1.8%2.5%1.9%
Jun – Jul(0.4%)(1.9%)(0.6%)
Jul – Aug(3.2%)(2.8%)(2.9%)
Aug – Sep(3.8%)(3.1%)(3.5%)
Sep – Oct(2.6%)(2.8%)(2.8%)
Oct – Nov(1.8%)(2.3%)(2.7%)
Nov – Dec(1.4%)(0.4%)(0.9%)

Hours Worked

Labor Activity Contracts, Reversing 2024’s Year-End Gain

Hours Worked declined 0.6% in December 2025, reversing December 2024’s near-flat change (+0.1%) and aligning more closely with December 2023 (-1.1%). The smaller decline follows November’s sharper -3.0% drop, indicating a moderation in year-end labor activity.

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

202320242025(6.0%)(4.0%)(2.0%)0.0%2.0%4.0%1.5%2.7%(1.4%)Jan – Feb0.9%2.1%2.9%Feb – Mar0.6%(0.6%)0.6%Mar – Apr1.6%2.0%1.2%Apr – May2.2%2.7%1.8%May – Jun(0.1%)(2.0%)(0.2%)Jun – Jul(3.1%)(2.5%)(2.9%)Jul – Aug(4.8%)(4.0%)(4.6%)Aug – Sep(2.3%)(2.5%)(2.4%)Sep – Oct(2.0%)(2.4%)(3.0%)Oct – Nov(1.1%)0.1%(0.6%)Nov – Dec
Grouped column chart of the month-over-month change in hours worked, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.6%.
Grouped column chart of the month-over-month change in hours worked, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.6%.
Category202320242025
Jan – Feb1.5%2.7%(1.4%)
Feb – Mar0.9%2.1%2.9%
Mar – Apr0.6%(0.6%)0.6%
Apr – May1.6%2.0%1.2%
May – Jun2.2%2.7%1.8%
Jun – Jul(0.1%)(2.0%)(0.2%)
Jul – Aug(3.1%)(2.5%)(2.9%)
Aug – Sep(4.8%)(4.0%)(4.6%)
Sep – Oct(2.3%)(2.5%)(2.4%)
Oct – Nov(2.0%)(2.4%)(3.0%)
Nov – Dec(1.1%)0.1%(0.6%)

Homebase data, by region

Midwest Weakness Contrasts With Western Stability

The Midwest recorded the steepest regional declines, with Businesses Open down 1.9% and Employees Working falling 2.3%. Other regions saw more moderate pullbacks, with the West posting the smallest declines in both business activity (-0.5%) and employee activity (-0.5%).

(Month-over-month change in core economic indicators, by Census region)

Map of month-over-month change by Census region, with the figures for 2023, 2024 and 2025. In 2025: Mid-Atlantic down 1.9%, Midwest down 1.9%, Northeast down 1.3%, Other flat at 0.0%, Southeast down 1.1%, Southwest down 0.9%, West down 0.5%.−1.9%Midwest−1.3%Northeast−1.1%Southeast−0.9%Southwest−0.5%West
Map of month-over-month change by Census region, with the figures for 2023, 2024 and 2025. In 2025: Mid-Atlantic down 1.9%, Midwest down 1.9%, Northeast down 1.3%, Other flat at 0.0%, Southeast down 1.1%, Southwest down 0.9%, West down 0.5%.
Region202320242025
Midwestno data−1.6%−1.9%
Northeastno data−1.4%−1.3%
Southeastno data−0.5%−1.1%
Southwestno data−0.8%−0.9%
Westno data−0.4%−0.5%
Mid-Atlanticno data−0.7%−1.9%
Otherno data+0.7%0.0%

Region classification - Midwest: ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI; West: NV, UT, AZ, NM, CO, WY, MT, ID, OR, WA,

Employees Working

Discretionary Workforce Pullback Continues

Hospitality declined (-3.9%) as labor demand continues to track a pullback in discretionary spending, alongside softer employment in Food, Drink & Dining, Home & Repair, and Beauty & Wellness. Caregiving growth (+0.9%) and flat Retail (+0.1%) underscore a shift toward essentials.

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

202320242025(4.0%)(2.0%)0.0%2.0%4.0%1.4%2.1%(1.4%)Jan – Feb0.1%1.2%2.1%Feb – Mar1.5%0.3%1.1%Mar – Apr1.0%1.1%0.4%Apr – May1.8%2.5%1.9%May – Jun(0.4%)(1.9%)(0.6%)Jun – Jul(3.2%)(2.8%)(2.9%)Jul – Aug(3.8%)(3.1%)(3.5%)Aug – Sep(2.6%)(2.8%)(2.8%)Sep – Oct(1.8%)(2.3%)(2.7%)Oct – Nov(1.4%)(0.4%)(0.9%)Nov – Dec
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.9%.
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 0.9%.
Category202320242025
Jan – Feb1.4%2.1%(1.4%)
Feb – Mar0.1%1.2%2.1%
Mar – Apr1.5%0.3%1.1%
Apr – May1.0%1.1%0.4%
May – Jun1.8%2.5%1.9%
Jun – Jul(0.4%)(1.9%)(0.6%)
Jul – Aug(3.2%)(2.8%)(2.9%)
Aug – Sep(3.8%)(3.1%)(3.5%)
Sep – Oct(2.6%)(2.8%)(2.8%)
Oct – Nov(1.8%)(2.3%)(2.7%)
Nov – Dec(1.4%)(0.4%)(0.9%)

Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.

Hourly Wages

Cumulative Wage Growth Reaches Historic 42.9% Peak

Hourly wages rose 0.6% month-over-month in December 2025, extending cumulative wage growth to a record 42.9% above January 2022. Year-over-year wage growth between July and December outpaced 2024, marking the strongest second-half at 6%.

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

All industries0.0%7.0%14.0%21.0%28.0%35.0%42.0%41.6%Jan'23Jan'24Jan'25Dec'25
Line chart of average hourly wages against January 2022, monthly. It reaches 41.6% above the January 2022 level by December 2025.
Line chart of average hourly wages against January 2022, monthly. It reaches 41.6% above the January 2022 level by December 2025.
PeriodAll industries
Point 11.3%
Point 21.1%
Point 32.7%
Point 43.3%
Point 53.7%
Point 64.4%
Point 75.1%
Point 86.0%
Point 97.3%
Point 107.7%
Point 119.4%
Jan'2311.8%
Point 1313.4%
Point 1413.5%
Point 1514.1%
Point 1615.0%
Point 1715.7%
Point 1816.6%
Point 1916.7%
Point 2018.5%
Point 2119.8%
Point 2221.2%
Point 2322.2%
Jan'2424.7%
Point 2525.9%
Point 2625.8%
Point 2726.5%
Point 2826.9%
Point 2927.5%
Point 3027.9%
Point 3128.5%
Point 3229.3%
Point 3329.8%
Point 3430.9%
Point 3531.4%
Jan'2533.7%
Point 3735.6%
Point 3835.8%
Point 3935.9%
Point 4035.9%
Point 4136.6%
Point 4237.5%
Point 4337.3%
Point 4438.8%
Point 4540.1%
Point 4640.8%
Dec'2541.6%

Hourly Wages

December Wage Growth Broadens Across Industries

Hourly wages increased 0.6% month-over-month in December 2025, exceeding December 2024’s flat growth. Most industries posted comparable gains, though Health Care wages dipped slightly (-0.2%).

(Average “Hourly Wages” across all jobs)

December 2025$0.00$2.00$4.00$6.00$8.00$10.00$12.00$14.00$16.00$18.00$20.00$22.00$13.83Food & Drink$14.52Entertainment$15.47Retail$20.17Health Care$17.73ProfessionalServices
Column chart of the average hourly wage by sector in December 2025: Food & Drink $13.83, Entertainment $14.52, Retail $15.47, Health Care $20.17, Professional Services $17.73.
Column chart of the average hourly wage by sector in December 2025: Food & Drink $13.83, Entertainment $14.52, Retail $15.47, Health Care $20.17, Professional Services $17.73.
CategoryDecember 2025
Food & Drink$13.83
Entertainment$14.52
Retail$15.47
Health Care$20.17
Professional Services$17.73

Number of Jobs Added

2025 Hiring Pattern Shows Moderation After August Peak

Hiring fell 7.7% in December 2025, less severe than December 2024 (-11.7%) but weaker than 2023 (-2.9%). Relative to January, hiring remained stronger in 2025 (-5.5%) than 2024 (-9.9%), following front-loaded gains in August (+9.9%) and subsequent fall corrections.

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

202320242025(12.0%)(8.0%)(4.0%)0.0%4.0%8.0%12.0%2.0%3.1%5.0%Jan – Feb(3.3%)0.7%0.4%Feb – Mar7.3%7.0%5.5%Mar – Apr3.8%2.8%6.4%Apr – May(1.4%)1.2%(0.4%)May – Jun(7.0%)(11.7%)(11.4%)Jun – Jul5.4%8.1%10.3%Jul – Aug1.1%0.1%(3.7%)Aug – Sep(5.6%)(9.1%)(6.0%)Sep – Oct(5.3%)1.4%(1.8%)Oct – Nov(2.7%)(11.7%)(7.6%)Nov – Dec
Grouped column chart of the month-over-month change in jobs added per location, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 7.6%.
Grouped column chart of the month-over-month change in jobs added per location, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 7.6%.
Category202320242025
Jan – Feb2.0%3.1%5.0%
Feb – Mar(3.3%)0.7%0.4%
Mar – Apr7.3%7.0%5.5%
Apr – May3.8%2.8%6.4%
May – Jun(1.4%)1.2%(0.4%)
Jun – Jul(7.0%)(11.7%)(11.4%)
Jul – Aug5.4%8.1%10.3%
Aug – Sep1.1%0.1%(3.7%)
Sep – Oct(5.6%)(9.1%)(6.0%)
Oct – Nov(5.3%)1.4%(1.8%)
Nov – Dec(2.7%)(11.7%)(7.6%)

Number of Jobs Archived

December Turnover Stabilizes Between Historical Extremes

Turnover declined 6.1% in December 2025, landing between December 2023 (-5.6%) and December 2024 (-9.0%). Relative to January, turnover remained higher in 2025 (-5.9%) than 2024 (-10.7%), following elevated volatility earlier in the year.

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

202320242025(20.0%)(15.0%)(10.0%)(5.0%)0.0%5.0%10.0%15.0%(3.9%)(1.7%)0.4%Jan – Feb(2.1%)(0.1%)(3.9%)Feb – Mar3.7%9.6%2.5%Mar – Apr7.7%6.0%3.4%Apr – May1.9%(10.8%)1.2%May – Jun(0.2%)(4.8%)(5.9%)Jun – Jul12.1%5.7%9.5%Jul – Aug(3.9%)1.7%(1.9%)Aug – Sep0.0%(5.9%)(5.3%)Sep – Oct(15.5%)0.3%(2.0%)Oct – Nov(5.6%)(8.8%)(5.7%)Nov – Dec
Grouped column chart of the month-over-month change in jobs archived per location, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 5.7%.
Grouped column chart of the month-over-month change in jobs archived per location, one group per month and one column per year (2023, 2024 and 2025). Most recent month: 2025 down 5.7%.
Category202320242025
Jan – Feb(3.9%)(1.7%)0.4%
Feb – Mar(2.1%)(0.1%)(3.9%)
Mar – Apr3.7%9.6%2.5%
Apr – May7.7%6.0%3.4%
May – Jun1.9%(10.8%)1.2%
Jun – Jul(0.2%)(4.8%)(5.9%)
Jul – Aug12.1%5.7%9.5%
Aug – Sep(3.9%)1.7%(1.9%)
Sep – Oct0.0%(5.9%)(5.3%)
Oct – Nov(15.5%)0.3%(2.0%)
Nov – Dec(5.6%)(8.8%)(5.7%)

How we measure Main Street

The dataset is based on Homebase data gathered from more than 100,000 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+

Hourly employees

Small businesses
100K+

Small businesses

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.

Read this monthEvery data story

Top-rated app built for small business teams.

  • USA Today
  • The Wall Street Journal
  • Forbes
  • The New York Times

We love talking data

Questions, or real-time access to Homebase data feeds?

Email the data team

Get the next report

A new report publishes every month. Leave an email and we will send the next one, or take this month with you now.

One email a month, the report and nothing else.

Download this month’s PDF

Run your team on the data behind Main Street

Scheduling, time clocks, payroll, hiring and team communication, free to get started.

Get started for free

Recognized by the people who cover small business.

Best Payroll for Hourly Teams

2024

Best in Business for Best AI Implementation

2025

Best Employee Scheduling

2025

Best HR & Employee App

2025