The unemployment rate fell in most states in June, mostly because many people gave up on their work searches and were no longer counted.

The Labor Department says the jobless rate declined in 39 states and Washington, D.C., last month. That's a slight improvement from May, when 37 states saw their rates decline.

Only 21 states saw net job gains in June, the government said. That compared to 41 the previous month and it was the fewest for the year.

The decline reflects the layoff of thousands of temporary census workers, who inflated total payrolls in May and then reduced them in June. Still, it's also a sign that businesses aren't hiring many new workers. Nationwide, private employers added a net gain of only 83,000 jobs last month.