Indiana’s unemployment rate rose last month for the first time in five months even as the state’s private sector added jobs.

The Indiana unemployment rate went up 0.1 percent rising to 3.1 percent in July. That’s the first increase since February. But it still keeps the unemployment rate well below the national average and lower than all neighboring states.

The Hoosier State’s private sector added 2,000 jobs last month, buoyed by the private educational and health services and manufacturing sectors. The construction sector took a notable tumble, shedding 700 jobs in July.

Yet despite private sector job growth, Indiana’s labor force declined for the third consecutive month. The labor force includes people who have a job or are actively looking for one. And growth in the labor force is typically viewed as a sign of optimism in the economy.