CHAMPAIGN – Illinois' unemployment rate increased again in July with the loss of thousands of government and hospitality jobs, the state Department of Employment Security said Thursday.

The July unemployment rate hit 8.9 percent, up from 8.7 percent in June. It was the second straight monthly increase after nine months of steady drops.

But state officials pointed out that even with the increase unemployment remains significantly lower than the 10.1 percent rate of July 2011. They also noted that the state had 28,000 more jobs than it did a year earlier.