The Hiring Divide: Justworks Sees Small Businesses Thriving While Big Tech Reduces Workforces

Large companies continue their relentless layoff cycles, but we see a different story unfolding among small businesses.Our latest 2026 research reveals consistent hiring plans among growth-stage companies, demonstrating that we are indeed in a golden age of small businesses. 

Small businesses are still hiring:

More than half of Justworks’ PEO customers (53%) plan to hire in the next year, while fewer than 5% plan for workforce reductions, a trend that has remained consistent over the past twelve months. ¹

Small teams can do big things:

For 46% of our customers, steady growth is the primary driver of their workforce strategy.² They're building their businesses sustainably, leaning into a shared principle: stay lean for longer. With AI as their not-so-secret weapon, 57% plan to achieve higher productivity and velocity with the same headcount, meaning they can grow without over extending their payroll.

Job market conundrum: 

In spite of major tech companies laying off swaths of great talent, we found that 50% of those Justworks-supported growth stage companies hiring say it’s difficult to find quality talent for their open roles.³

Because these organizations find it challenging to source great talent, many see retaining employees as paramount. As a result, our customers are prioritizing retaining (58%) and rewarding (46%) high performers this year.⁴

Why it matters:

Small businesses have always had to carefully watch their bottom lines, and they’re acutely aware of how headcount impacts it. We’re not saying small businesses have never or will never need to reduce their workforces, but they’ve been conditioned to stay rigorous because every single dollar counts. 

When big companies hire talent, those workers often find that their impact radius is far more limited than they expected. But when a small organization hires talent, it can transform the very trajectory of their business. That’s one reason why Justworks customers hire with such care and focus. 

It’s never been more true that small teams can do big things. We already see AI making new jobs happen for small businesses; 15% of our customers expect AI to create new roles⁵ and we’ve already seen a 130% increase in job titles with “AI” across our customer base in the last year.⁶ AI has changed how small businesses operate, and we’re excited to support small businesses as they evolve. 

^{1 Justworks Customer Panel Survey conducted May 2026}

^{2 Justworks Customer Panel Survey conducted February 2026}

^{3 Justworks Customer Panel Survey conducted February 2026}

^{4 Justworks Customer Panel Survey conducted May 2026}

^{5 Justworks Customer Panel Survey conducted May 2026}

^{6 Justworks Customer Employment Data, July 2026}