Small business job growth declined for the fourth straight month in June, but wages continue to increase and the South led job growth, according to The Paychex | IHS Markit Small Business Employment Watch.

The Small Business Jobs Index decreased 0.24 percent to 100.10 in June. The index is at its lowest level since late 2011. National hourly earnings in June were $25.82, increasing 2.88 percent ($0.72) year-over-year.

“Small business job gains have slowed, consistent with tightening labor markets. Wage gains continue at a moderate pace, up 2.88 percent from last year,” said James Diffley, chief regional economist at IHS Markit.

“Over the past month we’ve seen continued uncertainty as it relates to legislative policies that stand to impact small businesses,” said Martin Mucci, Paychex president and CEO. “The decline in this month’s index and modest growth in wages seem to reflect an unclear regulatory picture combined with a narrowing labor market.”

Although small business job gains slowed in all four regions of the U.S., the South was the only with an index level significantly greater than 100, signifying faster growth than in the 2004 base year.

For more information about the Paychex | IHS Markit Small Business Employment Watch, including interactive charts detailing all data at a national, regional, state, metro, and industry level, see: Paychex empoyment watch