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DENVER—Colorado nonfarm payroll jobs declined by 4,300 from July to August, but the state’s unemployment rate fell slightly as more people dropped out of the labor force.

The Colorado Department of Labor and Employment said Friday the jobless rate fell by a tenth of a percentage point to 7 percent.

The department says the number of people in the labor force fell by 5,300.

The national unemployment rate was 7.3 percent in August.

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