Business
April Small Business Pulse
Payroll grows, but cost pressures continue
Chase Center for Economic Intelligence
April 24, 2026
What we're seeing
- Profitability stabilizes: Our proxy for business profitability is above March 2025 levels, indicating solid financial footing.
- Payroll growth increases: Continuing February’s rebound, more businesses expanded payrolls y/y and the typical payroll increase improved m/m, suggesting businesses are open to hire after an early-year slowdown.
- Cost pressures remain widespread, with 60% of businesses reporting overall cost increases, primarily from input costs. The gap between cost increases and revenue increases is largest in the Northeast and California.
- Long-lived businesses provide community, stability, and jobs. Just 1 in 6 established businesses are older than 20 years, but they are responsible for 1 in 3 payroll dollars. Supporting business longevity is as important as supporting business formation.