Idaho's unemployment fell to 6.8 percent in November, the first time it has dipped below 7 percent in more than three years.
The state's unemployment rate is at its lowest since March 2009.
More than 1,000 idled workers found new jobs in November.
Employers are hiring again, but the pace is slow, Idaho Department of Labor officials said.
Idaho businesses hired 14,000 new workers in November, most filling vacancies created by firings, retirements or other reasons. Employers are expected to hire 180,000 workers this year, about the same as in 2008.
More than 300 workers dropped out of the labor force in November.
Idaho's workforce has shrunk for six straight months, declining by 7,500 people.
The number of unemployed Idahoans dropped to 52,400 from 65,600 in November 2011, a drop of more than 13,000.
Unemployment in Boise fell to 6 percent from 7.5 percent a year ago. In Meridian, the jobless rate dipped to 5.4 from 6.8 percent a year ago.
Nampa's jobless rate was 7.6 percent down from 10.8 percent a year ago.