Unemployment in Indiana is still at its lowest level in 16 years.

The Indiana Department of Workforce Development has released January’s unemployment numbers and, despite a drop of 2,200 private sector jobs in January, the state’s unemployment rate is still sitting at 4%. The labor force in Indiana is up more than 7,000 jobs, compared to the previous month.

Workforce Development Commissioner Steven Braun tells Inside Indiana Business that while the low unemployment rate is good, “it also represents a significant challenge for Hoosier employers in identifying and hiring qualified employees.”

Construction saw the biggest job growth, while trade, transportation and utilities lost the most jobs over the month.