The unemployment rate dropped in 37 states in May and was unchanged in seven others compared with April, the U. S. Department of Labor said on Friday.

The department also said that for the month, payrolls increased in 41 states and the District of Columbia.

Figures are less positive from a longer viewpoint. From a year earlier in May, 31 states and the District of Columbia had increases in their unemployment rates.

It has further been reported that for the month, however, payrolls increased by 43,600 in Texas, 28,300 in California and by 21,000 in New York, the biggest gains in the country. Jobs rose by 20,300 in both Florida and Virginia.

New Mexico recorded the largest drop in private sector jobs in May, losing 1,700 jobs, followed by South Dakota with a drop of 800 and Idaho with 200 fewer jobs.

The department said previously this month that the unemployment rate nationally fell to 9.7 percent in May, largely due to temporary jobs with the U. S. Census Bureau.

In May, Nevada's jobless rate was 14 percent, the highest in the nation. Michigan's rate of 13.6 percent was the second highest, followed by California, where 12.4 percent of the workforce is unemployed.

The report also noted that the lowest rate in the country in May was North Dakota, 4.6 percent, followed by South Dakota, where 3.6 percent were unemployed. (With Inputs from Agencies)