MONTPELIER — The state says Vermont's unemployment rate dropped two-tenths of one percent in October to 6.5 percent of the work force.

But it's not seen as good news.

Labor Commissioner Patricia Moulton Powden says that even though the unemployment rate has been declining since May, the Vermont labor market is not yet recovering. She says the state has not seen any significant job growth.

The state says the decrease in unemployment may be due to workers choosing not to work so they are not counted among the unemployed.

Last month's unemployment figure was up 1.6 percent from October 2008.

Unemployment in Vermont's 17 labor market areas last month ranged from 3.7 percent in Hartford to 8.0 percent in Rutland.