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ATLANTA --Georgia's seasonally adjusted unemployment rate increased to 8.6 percent in June.

The Georgia Department of Labor says the rate was up three-tenths of a percentage point from 8.3 percent in May, but it was down five-tenths of a percentage point from 9.1 percent in June a year ago.

State Labor Commissioner Mark Butler said the increase was due toeducation workersbeing unemployed during the summer and new graduates still looking for a job.

The seasonal impact on the unemployment rate was compounded because Georgia lost 600 jobs and the number of people in the labor force declined by 1,341.

Butler saidthis was the best May-to-June job performancesince 2002,and factoring outthe loss of 10,000 government jobs and just looking at the private sector, the stateactually gained 9,400 jobs last month.

The number of jobs declined slightly to 4,043,500, down from 4,044,100 in May. State and local government education services lost 12,700 jobs, the most of any sector. However, some industries added workers. Those increases came in professional and business services, 8,000; leisure and hospitality, 4,000; construction and financial services, 1,700 each; and manufacturing and other services, 1,200 each.