Indiana’s labor force increased by more than 3,700 people last month.

The state’s unemployment rate dropped 0.2 percent in July to 4.6 percent, below the national rate of 4.9 percent, according to the Indiana Department of Workforce Development.

“In Indiana, job creation remains job one, and we continue to see tremendous economic growth across the state,” said Victor Smith, Indiana Secretary of Commerce. “Indiana’s business climate ranks first in the Midwest and fifth overall, supporting Hoosier businesses that are adding jobs at rate of nearly 14 percent [since July 2009] and outpacing the national average.”

Indiana’s labor force participation rate remains at 65.4 percent, which is above the national rate of nearly 63 percent.

The unemployment rates for St. Joseph and Elkhart counties will be released next week.