POST FALLS — With a tight labor market, upward pressure on wages should continue for the near future, an economist said.

"Wages are rising, and rising fast enough to stay ahead of inflation," said Sam Wolkenhauer, a regional Labor economist. "I would anticipate that going forward most of the growth in (the region) will be growth in incomes rather than growth in the number of employed."

Wolkenhauer said the drop in the jobless rate was due to a small number of the unemployed dropping out of the labor force and ending their job search.

"It’s difficult to say why they may have done so," he said. "This is probably a combination of discouraged workers, people leaving the labor force for retraining and retirement."

Wolkenhauer said the local labor market remains healthy overall, operating at near full employment.

The state's rate sits at 3.1 percent and the nation's at 4.4 percent.

Idaho's rate fell for the fourth straight month (down a tenth of a percent from May), further squeezing an already tight labor market.

The drop is the result of more than 2,000 Idahoans exiting the workforce or ending their work search, according to the report. Total employment dropped by nearly 700, while the total number of unemployed fell by almost 1,300.

Month-over-month, June estimates show Idaho’s total nonfarm payroll jobs increased by one-tenth of a percent, up 400 to 709,200. Five of the state’s 11 industry sectors showed job declines, including natural resources, manufacturing, financial activities, other services and trade, transportation and utilities.

Five sectors showed job gains. Construction jobs increased by 600, government by 500, professional and business services by 400, information by 200 and education and health services by 200. Leisure and hospitality was unchanged from May.

The state’s labor force participation rate — the percentage of people 16 years and older with jobs or looking for work — dropped to 63.2 percent, the lowest participation rate since June 1976. Idaho’s participation rate has fallen just under 1 percent from February.

Year-over-year, Idaho’s labor force still showed gains, up 5,100 from June 2016. Idaho’s nonfarm jobs have shown steady annual growth for 90 months since the trough of the past recession in January 2010.

None of Idaho’s 11 industry sectors were down from their June 2016 employment levels. Nonfarm payroll jobs were up 2.2 percent with a net gain of 15,200 jobs. Construction showed the largest annual job growth, up 4.6 percent. Strong job gains also occurred in education and health services, government services, leisure and hospitality and manufacturing.

Only two Idaho counties remain at or above 6 percent unemployment. Clearwater is at 6 percent; Shoshone 6.1 percent.