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

Main Street Health Report

July 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.

Employees working fell 1.4% month-over-month, more than double the 0.6% dip in 2025, suggesting factors beyond seasonal norms. The World Cup may have prompted early staffing adjustments, though the data doesn't yet confirm it.

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

  • -1.4%

    Employees working fell 1.4% month-over-month, more than double the 0.6% dip in 2025, suggesting factors beyond seasonal norms. The World Cup may have prompted early staffing adjustments, though the data doesn't yet confirm it.

  • -1.1%

    Hours worked declined more steeply than in July 2025 but fell short of 2024's drop, placing 2026 squarely between the two prior years. Front-loading ahead of World Cup events is a plausible explanation.

  • -4.3%

    Business openings contracted across all five Census regions in July, with the Southwest posting the steepest decline at -4.3% month-over-month. The broad-based pullback mirrors the typical small business summer lull, though this year's contraction runs deeper than 2025.

What the data shows

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

The Workforce Participation Summer Slide Returns

Employees working fell 1.4% month-over-month, more than double the 0.6% dip in 2025, suggesting factors beyond seasonal norms. The World Cup may have prompted early staffing adjustments, though the data doesn't yet confirm it.

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

202420252026(2.0%)(1.0%)0.0%1.0%2.0%3.0%2.1%(1.4%)0.0%Jan – Feb1.2%2.1%0.9%Feb – Mar0.3%1.1%0.8%Mar – Apr1.1%0.4%0.3%Apr – May2.5%1.9%2.6%May – Jun(1.9%)(0.6%)(1.4%)Jun – Jul
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.4%.
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.4%.
Category202420252026
Jan – Feb2.1%(1.4%)0.0%
Feb – Mar1.2%2.1%0.9%
Mar – Apr0.3%1.1%0.8%
Apr – May1.1%0.4%0.3%
May – Jun2.5%1.9%2.6%
Jun – Jul(1.9%)(0.6%)(1.4%)

Hours Worked

Workers Clocked Out Earlier This Summer Than Last

Hours worked declined more steeply than in July 2025 but fell short of 2024's drop, placing 2026 squarely between the two prior years. Front-loading ahead of World Cup events is a plausible explanation.

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

202420252026(2.0%)(1.0%)0.0%1.0%2.0%3.0%2.7%(1.4%)0.7%Jan – Feb2.1%2.9%1.0%Feb – Mar(0.6%)0.6%0.4%Mar – Apr2.0%1.2%1.2%Apr – May2.7%1.8%2.5%May – Jun(2.0%)(0.2%)(1.1%)Jun – Jul
Grouped column chart of the month-over-month change in hours worked, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.1%.
Grouped column chart of the month-over-month change in hours worked, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.1%.
Category202420252026
Jan – Feb2.7%(1.4%)0.7%
Feb – Mar2.1%2.9%1.0%
Mar – Apr(0.6%)0.6%0.4%
Apr – May2.0%1.2%1.2%
May – Jun2.7%1.8%2.5%
Jun – Jul(2.0%)(0.2%)(1.1%)

Businesses Open, by region

Open Businesses Decline Across All Regions

Business openings contracted across all five Census regions in July, with the Southwest posting the steepest decline at -4.3% month-over-month. The broad-based pullback mirrors the typical small business summer lull, though this year's contraction runs deeper than 2025.

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

Map of month-over-month change by Census region, with the figures for 2024, 2025 and 2026. In 2026: Mid-Atlantic down 2.2%, Midwest down 2.1%, Northeast down 1.6%, Other down 1.6%, Southeast down 2.7%, Southwest down 4.3%, West down 1.9%.−2.1%Midwest−1.6%Northeast−2.7%Southeast−4.3%Southwest−1.9%West
Map of month-over-month change by Census region, with the figures for 2024, 2025 and 2026. In 2026: Mid-Atlantic down 2.2%, Midwest down 2.1%, Northeast down 1.6%, Other down 1.6%, Southeast down 2.7%, Southwest down 4.3%, West down 1.9%.
Region202420252026
Midwest−2.5%−2.4%−2.1%
Northeast−1.3%−1.7%−1.6%
Southeast−2.1%−2.2%−2.7%
Southwest−7.6%−2.0%−4.3%
West−1.6%−1.6%−1.9%
Mid-Atlantic−2.9%−2.0%−2.2%
Other−1.2%−1.1%−1.6%

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

Entertainment and Hospitality Beat the July Blues

Entertainment (+3.9%) and Hospitality (+2.0%) were the only industries to add workers in July, likely driven by World Cup tourism and peak summer demand. Every other tracked sector posted month-over-month workforce declines.

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

202420252026(2.0%)(1.0%)0.0%1.0%2.0%3.0%2.1%(1.4%)0.0%Jan – Feb1.2%2.1%0.9%Feb – Mar0.3%1.1%0.8%Mar – Apr1.1%0.4%0.3%Apr – May2.5%1.9%2.6%May – Jun(1.9%)(0.6%)(1.4%)Jun – Jul
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.4%.
Grouped column chart of the month-over-month change in employees working, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 1.4%.
Category202420252026
Jan – Feb2.1%(1.4%)0.0%
Feb – Mar1.2%2.1%0.9%
Mar – Apr0.3%1.1%0.8%
Apr – May1.1%0.4%0.3%
May – Jun2.5%1.9%2.6%
Jun – Jul(1.9%)(0.6%)(1.4%)

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

Hourly Wages

Three Straight Years of Slowing Wage Growth, Now at 6%

Hourly wage growth has decelerated each year since 2024 (9.7% → 7.5% → 6.0%), the slowest annual rate in three years. The relief is real for SMB owners, but the cumulative 44.7% increase since January 2022 means labor costs are still historically elevated.

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

All industries0.0%8.0%16.0%24.0%32.0%40.0%48.0%44.7%Jan'23Jan'24Jan'25Jan'26Jun'26
Line chart of average hourly wages against January 2022, monthly. It reaches 44.7% above the January 2022 level by July 2026.
Line chart of average hourly wages against January 2022, monthly. It reaches 44.7% above the January 2022 level by July 2026.
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%
Point 4741.6%
Jan'2642.6%
Point 4943.5%
Point 5043.7%
Point 5143.7%
Point 5244.0%
Jun'2644.7%

Hourly Wages

Health Care Leads on Pay; Retail Is Closing the Gap Fastest

Health Care remains the top-paying sector at $20.62/hr, while Retail (+6.2% Y/Y) is growing the fastest, now $15.85/hr, up from $15.56 a year ago. Food & Drink ($14.11/hr) continues to anchor the low end of the wage spectrum.

(Average “Hourly Wages” across all jobs)

July 2026$0.00$2.00$4.00$6.00$8.00$10.00$12.00$14.00$16.00$18.00$20.00$22.00$14.11Food & Drink$14.78Entertainment$15.85Retail$20.62Health Care$17.86ProfessionalServices
Column chart of the average hourly wage by sector in July 2026: Food & Drink $14.11, Entertainment $14.78, Retail $15.85, Health Care $20.62, Professional Services $17.86.
Column chart of the average hourly wage by sector in July 2026: Food & Drink $14.11, Entertainment $14.78, Retail $15.85, Health Care $20.62, Professional Services $17.86.
CategoryJuly 2026
Food & Drink$14.11
Entertainment$14.78
Retail$15.85
Health Care$20.62
Professional Services$17.86

Number of Jobs Added

July's Hiring Freeze Is Seasonal, But the Annual Gap Is Real

A ~10% month-over-month drop in hiring is normal for July, but the -1.6% Y/Y decline signals 2026 hiring is running slightly below last year's pace. With turnover simultaneously elevated, small businesses are replacing workers more slowly than they're losing them.

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

202420252026(12.0%)(8.0%)(4.0%)0.0%4.0%8.0%3.1%5.0%3.8%Jan – Feb0.7%0.4%2.9%Feb – Mar7.0%5.5%4.5%Mar – Apr2.8%6.4%6.4%Apr – May1.2%(0.4%)(0.9%)May – Jun(11.7%)(11.4%)(10.3%)Jun – Jul
Grouped column chart of the month-over-month change in jobs added per location, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 10.3%.
Grouped column chart of the month-over-month change in jobs added per location, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 10.3%.
Category202420252026
Jan – Feb3.1%5.0%3.8%
Feb – Mar0.7%0.4%2.9%
Mar – Apr7.0%5.5%4.5%
Apr – May2.8%6.4%6.4%
May – Jun1.2%(0.4%)(0.9%)
Jun – Jul(11.7%)(11.4%)(10.3%)

Number of Jobs Archived

Turnover Plunged, but Exits Are Still Running Hot

July's sharp month-over-month drop in turnover is largely a correction after an unusually high June. With Y/Y turnover still up 4.2%, workers are exiting at a faster annual clip than in 2025. This is a pattern that has now persisted for the better part of a year.

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

202420252026(12.0%)(8.0%)(4.0%)0.0%4.0%8.0%12.0%(1.7%)0.4%(3.4%)Jan – Feb(0.1%)(3.9%)(0.3%)Feb – Mar9.6%2.5%7.1%Mar – Apr6.0%3.4%4.5%Apr – May(10.8%)1.2%7.5%May – Jun(4.8%)(5.9%)(8.5%)Jun – Jul
Grouped column chart of the month-over-month change in jobs archived per location, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 8.5%.
Grouped column chart of the month-over-month change in jobs archived per location, one group per month and one column per year (2024, 2025 and 2026). Most recent month: 2026 down 8.5%.
Category202420252026
Jan – Feb(1.7%)0.4%(3.4%)
Feb – Mar(0.1%)(3.9%)(0.3%)
Mar – Apr9.6%2.5%7.1%
Apr – May6.0%3.4%4.5%
May – Jun(10.8%)1.2%7.5%
Jun – Jul(4.8%)(5.9%)(8.5%)

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