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Unemployment rate falls half a percentage point

NASHVILLE (AP) — Tennessee’s unemployment rate fell half a point in July to 5.5 percent, the state’s top labor official said Thursday.

Unemployment, down from 6 percent in June, remains above the national rate of 5 percent, Labor and Workforce Development Commissioner James Neeley said.

Month-over-month job gains were posted in the accommodation, construction and nursing and residential care facilities fields. Seasonal job losses were reported in educational service jobs as schools dismissed for the summer.

The state also is seeing more jobs in the past year, officials said.

“From July 2004 to July 2005 we have seen job growth totaling 21,600 jobs,” Neeley said in a statement.

Most of that growth has occurred in trade/transportation/utilities, which was up by 6,500, and health care/social assistance, which gained 6,400. Decreases were reported in the manufacturing, accommodation and information sectors.

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