The Small Business Economy Explained - from the Gusto Insights Group

America's Small Business Economy in Transition: The Economy Explained, November 2025


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Small businesses in America today face a paradox. On paper, the economy looks strong: GDP is growing at nearly 4%, consumer spending is healthy, and inflation is moderating. Yet business owners are seeing something different on the ground – weakening demand, falling consumer confidence, and a labor market that has cooled dramatically from its red-hot pace of recent years.


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The Small Business Economy Explained - from the Gusto Insights GroupBy Gusto Insights