Why the Small Business Wage Gap Is Widening in 2026

The May jobs report showed average hourly earnings rising to $37.50, but that headline masks a growing divide: small businesses are raising wages far more slowly than large corporations. Lucas and Luna examine data from ADP and the Atlanta Fed Wage Tracker to explain why Main Street employers can't keep up with Amazon and Walmart, and what that means for the 35 million Americans who work at firms with fewer than 250 employees. They also discuss how the ECB's surprise rate hike on June 11 and rising energy costs are squeezing small business margins, making it harder to compete for talent. The episode draws on the latest JOLTS data showing 7.6 million job openings and the April employment cost index reading of 177.5. If you've wondered why your local coffee shop can't match big-company pay even in a tight labor market, this one is for you. #WageGap #SmallBusiness #LaborMarket #JobsReport #ADP #AtlantaFed #WageTracker #JOLTS #EmploymentCostIndex #ECB #InterestRates #EnergyCosts #Inflation #MainStreet #Economics #FexingoBusiness #BusinessPodcast #TheLaborMarketPodcast Keep every episode free: buymeacoffee.com/fexingo