INDIANAPOLIS - Indiana's unemployment rate dropped to 3.4 percent in July, compared to 3.5 percent in June. The Indiana Department of Workforce Development says the state also lost 1,300 private sector jobs last month.

Figures from the U.S. Bureau of Labor Statistics show Indiana's labor force saw a net decrease of 6,608 over the previous month. The state's total labor force, which includes residents who are either employed or seeking employment, stands at nearly 3.4 million.

Indiana's labor force participation rate remained at 65 percent, which remains above the national rate of 63 percent.

The DWD says the decrease in jobs last month was primarily due to losses in the Leisure and Hospitality and the Trade, Transportation and Utilities sectors. Those losses were partially offset by gains in the Private Educational and Health Services and the Financial Activities sectors.

Indiana's unemployment rate is lower than the national rate of 3.7 percent. Of the surrounding states, Indiana continues to be the only one to have an unemployment rate below 4 percent. Only Wisconsin and Minnesota have lower unemployment rates in the Midwest at 2.8 and 3.0 percent, respectively.