Main Street Health Report
January 2026
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.
Workforce participation fell -4.8% in January, similar to -4.9% in 2025, signaling labor market resilience as businesses enter 2026 with stable staffing levels.
- Hourly employees
- 2M+
- Small businesses
- 100K+
- Measured, not surveyed
- Timesheet data
Hourly employees
Small businesses
Measured, not surveyed
Main Street at a glance
The top things to know this month
-4.8%
Workforce participation fell -4.8% in January, similar to -4.9% in 2025, signaling labor market resilience as businesses enter 2026 with stable staffing levels.
5.4%
Hours worked fell 5.4%, following the holiday season, outperforming Jan’25 (-5.6%) and Jan’24 (-7.3%), as businesses managed post-holiday workforce adjustments more efficiently. However, Hours Worked Per Location declined 3.6% month-over-month indicating shorter shifts.
8%
Hours worked per location in 13 affected states fell 8% below pre-storm levels while unaffected states remained stable, creating a 14% gap during late-January storms. Tennessee (-28.1%), North Carolina (-25.6%), and Arkansas (-24.6%) experienced the steepest disruptions compared to pre storm period in Jan.
What the data shows
Each finding below takes one measure of Main Street, participation, hours, wages, hiring and turnover, and compares January 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
Main Street Workforce Shows Post-Holiday Stability
Workforce participation fell -4.8% in January, similar to -4.9% in 2025, signaling labor market resilience as businesses enter 2026 with stable staffing levels.
(Monthly change in 7-day average of “Employees Working”, relative to January of previous year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.1% | (1.4%) | 0.0% |
Hours Worked
Labor Activity Contracts Less Sharply Than Prior Years
Hours worked fell 5.4%, following the holiday season, outperforming Jan’25 (-5.6%) and Jan’24 (-7.3%), as businesses managed post-holiday workforce adjustments more efficiently. However, Hours Worked Per Location declined 3.6% month-over-month indicating shorter shifts.
(Monthly change in 7-day average of “Hours Worked”, relative to January of previous year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.7% | (1.4%) | 0.7% |
Homebase data
Winter Storms Cut Employee Activity by 8% in 13 States
Hours worked per location in 13 affected states fell 8% below pre-storm levels while unaffected states remained stable, creating a 14% gap during late-January storms. Tennessee (-28.1%), North Carolina (-25.6%), and Arkansas (-24.6%) experienced the steepest disruptions compared to pre storm period in Jan.
(Weekly change in Hours Worked per Loc, in Affected vs Unaffected states)
Affected states: Arkansas, Connecticut, Delaware, District of Columbia, Idaho, Louisiana, Maryland, Maine, North Carolina,
Employees Working
Healthcare Nears Stability as Hospitality and Retail Recover
Medical/Veterinary services posted the smallest workforce decline across all industries (-0.9% y/y), nearing stabilization, while hospitality improved to -3.9% from -7.2% in 2025 and retail to -6.2% from -8.5%, signaling sector-specific recovery in consumer-facing businesses.
(Monthly change in 7-day average of “Employees Working”, relative to January of previous year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.1% | (1.4%) | 0.0% |
Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.
Hourly Wages
Wages Climb 44.8% Since 2022 in Persistent Three-Year Surge
Average hourly wages rose 44.8% since January 2022, up from 36.6% a year earlier, as small businesses continue raising pay to retain workers despite ongoing employment declines.
(Percent change in average “Hourly Wages” across all jobs, relative to January 2022)
| Period | All industries |
|---|---|
| Point 1 | 1.3% |
| Point 2 | 1.1% |
| Point 3 | 2.7% |
| Point 4 | 3.3% |
| Point 5 | 3.7% |
| Point 6 | 4.4% |
| Point 7 | 5.1% |
| Point 8 | 6.0% |
| Point 9 | 7.3% |
| Point 10 | 7.7% |
| Point 11 | 9.4% |
| Jan'23 | 11.8% |
| Point 13 | 13.4% |
| Point 14 | 13.5% |
| Point 15 | 14.1% |
| Point 16 | 15.0% |
| Point 17 | 15.7% |
| Point 18 | 16.6% |
| Point 19 | 16.7% |
| Point 20 | 18.5% |
| Point 21 | 19.8% |
| Point 22 | 21.2% |
| Point 23 | 22.2% |
| Jan'24 | 24.7% |
| Point 25 | 25.9% |
| Point 26 | 25.8% |
| Point 27 | 26.5% |
| Point 28 | 26.9% |
| Point 29 | 27.5% |
| Point 30 | 27.9% |
| Point 31 | 28.5% |
| Point 32 | 29.3% |
| Point 33 | 29.8% |
| Point 34 | 30.9% |
| Point 35 | 31.4% |
| Jan'25 | 33.7% |
| Point 37 | 35.6% |
| Point 38 | 35.8% |
| Point 39 | 35.9% |
| Point 40 | 35.9% |
| Point 41 | 36.6% |
| Point 42 | 37.5% |
| Point 43 | 37.3% |
| Point 44 | 38.8% |
| Point 45 | 40.1% |
| Point 46 | 40.8% |
| Point 47 | 41.6% |
| Jan'26 | 42.6% |
Hourly Wages
Professional Services Lead Wage Growth at $20.66 Per Hour
Professional services wages reached $20.66 in January 2026, surpassing healthcare at $18.43 and the overall average of $16.46, as pay dispersion widens across industries.
(Average “Hourly Wages” across all jobs)
| Category | January 2026 |
|---|---|
| Food & Drink | $13.88 |
| Entertainment | $14.67 |
| Retail | $15.62 |
| Health Care | $20.27 |
| Professional Services | $17.69 |
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+
- Small businesses
- 100K+
Hourly employees
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.
Top-rated app built for small business teams.
We love talking data
Questions, or real-time access to Homebase data feeds?
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.
Run your team on the data behind Main Street
Scheduling, time clocks, payroll, hiring and team communication, free to get started.
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
