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The jobless rate in 39 states and Washington, D.C. fell in June compared to the prior month, the Labor Department said. Just five states saw unemployment rate increases.
Already grappling with a surge in claims for unemployment insurance, recession-weary state labor departments are also now dealing with increased fraud.
Stocks tumbled Friday after the Labor Department said hiring remains weak and Hungary became the latest European country to report its economy is in crisis.
The Labor Department said initial claims for unemployment insurance rose by 17,000 to a seasonally adjusted 474,000. That was above analysts' expectations of 460,000.