The Vermont Department of Labor says the state's unemployment rate dropped one-tenth of 1 percent last month to 3.1 percent.
Barring a revision, 2016 figures show the average, statewide unemployment rate of 3.2 percent was the lowest annual unemployment rate since 2000.
The December figure is .5 percent lower than the December 2015 unemployment rate.
Labor Commissioner Lindsay Kurrle says going forward ensuring more people are employed in Vermont will become more challenging because of slow population growth and the continued retirement of the baby boomer generation.
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