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Hiring slowed for the fifth straight month in July, according to payroll processor Paychex, while the pace of wage increases also slowed from June.

Paychex reported on Tuesday that its employment index in all regions fell in July, with the West slipping the most, by 0.81%. The South continues to be the strongest region for small business job growth, while North Carolina was the new leading state in terms of job growth. Meanwhile, Florida was the new leading state in hourly earnings growth. Turning to metro areas, Dallas continued to lead the way in July in small business employment growth and hourly earnings growth for workers.

“Growth has slowed and it has been slowing for several months,” said Frank Fiorille, vice president of risk management, compliance and data analytics at Paychex. “We think that when we talk to small and medium-sized businesses, the family store, it’s really more of a supply issue than a demand issue. We hear, and from some of the data we’ve been able to compile , that businesses are still struggling to find, attract, and retain employees, which is why you’re not seeing the growth.

In terms of industries, the umbrella category of ‘other services (excluding public administration)’ remained the top sector for employment growth in July, but the leisure and hospitality sector continued to lose ground . Leisure and hospitality fell 1.99% in July, the largest drop among the sectors for the sixth consecutive month. Hourly earnings growth of 6.28% in leisure and hospitality slowed for the sixth consecutive month, while one-month annualized hourly earnings fell to 1.78%. Construction was the only sector to see positive growth in weekly hours worked of 0.38%, while leisure and hospitality ranked lowest, with a decline of 1.64%.

“When you really look at it, the decline is really in the leisure and hospitality sector,” Fiorille said. “This sector for the month is down almost 2%. This is where companies are struggling to find people.”

Accountants are expected to advise their small business clients to keep an eye out for potential Washington changes to corporate taxes, after Sen. Joe Manchin, D-West Virginia, agreed to a deal with the Senate Majority Leader Chuck Schumer, D-New York, on a 15% minimum tax rate, plus changes to the carried interest tax relief used by hedge fund managers and partner private equity firms to qualify for the lower rate of capital gains. The deal also includes additional funding for the Internal Revenue Service, as well as tax credits for renewable energy and electric vehicles as part of a broader climate change program. Most of the tax provisions will affect large corporations, and a provision on taxes for certain midstream companies appears to be out for the time being.

However, the package could undergo further changes as Democrats try to persuade Sen. Kyrsten Sinema, D-Arizona, to support it, as she has historically opposed tax increases. He is not expected to draw votes from Republicans, so he will need unanimous support from Democrats to advance to the Senate and near-unanimous support from Democrats in the House.

“That’s the key thing to watch whether this gets passed or not,” Fiorille said. “What does that mean? Looks like the transfer tax that was on offer isn’t there now, which I think is good news. Let’s see if there’s a last minute deal for get it approved, and if they change that or change other things.”