Unemployment held steady in Benton County last month at 3.4 percent, the Oregon Employment Department reported Friday.

While the number was unchanged from June, it was more than a point below last July's rate of 4.5 percent. Similar improvements were seen throughout the mid-valley, along with hiring increases that a department news release called "a sign that the area's economy is in recovery." The statewide jobless rate was 6.5 percent for July.

An estimated 1,405 Benton County residents went without a paycheck last month out of a civilian labor force of 40,957. Total employment in the county was 39,552. Total nonfarm payroll employment was 36,130, 130 jobs above the year-ago period.

Several factors come together in Benton County to keep unemployment numbers low, including high housing costs that force workers to live elsewhere or move away when they lose their jobs. There's also a large student population, with many doing part-time work. Students who aren't working may not be considered part of the labor force and thus are not counted in unemployment figures.

Professional and business services added 270 jobs over July 2003 in Benton County, government added 110, private services added 70 and trade, transportation and utilities added 60.

The manufacturing sector continued to shed jobs over the same period, with durable goods down 290 jobs from last July.

Linn County's unemployment rate dipped below 9 percent for the first time this year, falling to 8.9 percent from June's 9.7 percent level. July's rate was a full 2½ points below the year-ago period.

The county had an estimated 4,605 residents unemployed out of a civilian labor force of 51,995.

Employment Department economists predict continued job growth through the end of the year for the mid-valley, with steady employment in construction and additional hiring in wood products and primary metals manufacturing.