State officials are calling it the largest May-to-June unemployment rate increase on record.

A stagnant job market and escalating costs drove June's seasonally-adjusted unemployment rate up for the fourth straight month as the number of Idaho workers with jobs fell more than 11,000 below the June 2007 mark.

The unemployment rate in the Twin Falls micropolitan area edged up five-tenths of a percentage point to 3.3 since May. The Burley micropolitan area reported an increase of eight-tenths of a percentage point to 3.9 percent.

Idaho's unemployment rate jumped two-tenths from Mayto 3.8 percent.

Although June was the 37th consecutive month the state's rate has been below the 4-percent mark most economists consider full employment, the rate was 1.1 percentage points higher than a year earlier. Normally the unemployment rate remains unchanged in June.

Nationally, unemployment re-mained unchanged at 5.5 percent, the 81st month that Idaho's rate has been lower than the national average.

The labor force declined by 2,500 for the first month in over 20 years. Analysts speculated the decline reflected people dropping out of the labor force because of difficulty finding a good-paying job and coping with the higher expenses, especially in fuel, of taking a low-paying job.

Businesses, especially small ones, continued struggling with escalating operating costs and declining consumer confidence.

Employers reported only 17,500 new hires in June, the lowest number for June in over a decade.

The economy slowed in all areas of Idaho, but the most significant drop was in metropolitan Boise. Of the 11,200 fewer people working in June compared to a year ago, 9,100 of them lived in the five-county metro area.

The loss of construction and high-tech jobs in the last year has had a dramatic impact on not only the state's economy but the Boise economy specifically.

Although some sectors like health care reported job growth from May, it was not enough to meet the demand of people seeking work.

The number of available seasonal jobs decreased as employers limited hiring because of uncertainty over customer demand. Tourist-related industries that normally see a significant increase in summer jobs only showed modest gains, meaning fewer jobs for students.

Clearwater County reported the highest unemployment rate in Idaho for the month of June at 6.4 percent. Boundary County reported the lowest at 2.9 percent.