The Economy Explained: The Small-Business Economy Finds Its Footing
Gusto's February 2026 report shows the U.S. small-business economy stabilizing. GDP rebounded to 4.4%, small businesses added 37,100 jobs in January, and consumer spending grew 5.4% despite low sentiment. Inflation settled near 3%, the Fed cut rates to ~3.6%, and year-end bonuses rose 11.5%. AI is boosting small-business revenue without destroying jobs.
