The Paychex | IHS Small Business Jobs Index declined 0.18 percent in May, from 100.77 to 100.59, following steady results in March and April. Altogether, however, the pace of small business employment growth has increased 0.22 percent since the start of 2016. At 101.72, East South Central jumped to the top spot among regions, gaining 0.40 percent, the best one-month growth rate. Washington remained the top-ranked state index, with its fifth consecutive increase in 2016. Continuing to hold the top spot among metro areas, Seattle’s index increased for the fifth straight month, hitting a record level in May, 104.97. After holding steady in April, small business growth slowed in every industry sector analyzed in May.

"Following three months of consistently strong job growth, the Paychex | IHS Small Business Jobs Index declined 0.18 percent from the previous month to its lowest level of 2016,” said James Diffley, chief regional economist at IHS. “Nevertheless, at 100.59, the national index continues to indicate positive gains in small business employment."

"Following steady results during the past several months, it appears small businesses were not able to maintain the same level of employment growth in May," said Martin Mucci, president and CEO of Paychex. "It will be interesting to see how this trend plays out during the summer months when hiring traditionally increases among small businesses."