The Economy Explained for February 2026: Small-Businesses Finding their Footing

The Economy Explained for February 2026: Small-Businesses Finding their Footing

If the small-business economy had a theme in 2025, it was resilience in the face of mixed signals. The nation’s economy is growing strongly today, following a stumble last year. Hiring has stayed positive overall, despite growing at a slower pace than in recent years. Consumers kept opening their wallets even as they told pollsters they were worried. And the Federal Reserve finally began to deliver the interest rate relief that many small business owners had been hoping for. In this episode, we walk through our latest edition of the "The Economy Explained" for February 2026. Full article here: https://gusto.com/resources/gusto-insights/the-economy-explained-feb-2026?pagePath=resources&pagePath=gusto-insights&pagePath=the-economy-explained-feb-2026

The Reality of AI’s Impact on Small Businesses: New Evidence from Gusto Payroll Data

The latest data on small-business hiring from Gusto shows that AI isn’t the “jobs apocalypse” for small companies that some have feared. Our evidence suggests that small businesses with more AI-exposed workforces are seeing revenue and hiring gains – not the dramatic job losses that some have predicted. There’s a learning curve, but early evidence points toward growth, not decline. In this episode, we explore a major new study from Gusto's Insights Group, "The Reality of AI’s Impact on Small Businesses: New Evidence from Gusto Payroll Data." Full study is here: https://gusto.com/resources/gusto-insights/ai-impact-on-smbs-2026

Skilled Trade Workers Are Earning More in America’s AI Data Center Hotspots

Much of the conversation around artificial intelligence focuses on job displacement – the fear that AI might automate away millions of jobs. But this narrative overlooks a practical and less-discussed impact that AI will have on jobs: the massive physical infrastructure required to power AI is creating surging demand for skilled trade workers around America. In this research, we examine how pay for several skilled trades is being impacted by the AI datacenter boom today. Read the full research here: https://gusto.com/resources/gusto-insights/ai-data-center-wage-growth

What “No Tax on Tips and Overtime” Means for Small Business Workers

Starting in 2026, workers earning tips or overtime may see slightly bigger paychecks under new federal tax deductions [https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors] created by the One Big Beautiful Bill Act (OBBBA). How much will paychecks actually change for the typical small business worker from these new deductions? In this episode we walk through new research from the Gusto Insights Group breaking down the numbers for small businesses and their employees. Full research here: https://gusto.com/resources/gusto-insights/taxes-tips-overtime-obbba-2026?pagePath=resources&pagePath=gusto-insights&pagePath=taxes-tips-overtime-obbba-2026

Small Businesses Add 37,100 Jobs: January 2026 Gusto Small Business Jobs Report

Hiring among America’s small businesses posted solid gains in January, adding +37,100 net new jobs for the month – slightly below the 12-month average of 52,400 jobs, but marking continued improvement from the October-November soft patch and a sharp year-over-year gain from January 2025’s -12,100 net job loss. In this episode, we break down the latest Gusto Small Business Jobs Report for January 2026.