Unemployment rose in Tennessee last month by a half percentage point to 7.1 percent - the highest jobless rate since January.

The Tennessee Department of Labor and Workforce Development said today a household survey of state residents showed that 23,300 fewer Tennesseans were on the job in July than in the previous month. Tennesseee's job losses last month contrasted with continuing employment gains nationwide, adjusted for seasonal factors.

Despite the increase in July, however, Tennessee's unemployment rate still fell from 8.4 percent a year ago to 7.1 percent last month.

Nationwide, the unemployment rate in the past year has declined from 7.3 percent to 6.2 percent.