Indiana's unemployment rate also dropped to 4.7 percent in July.
As the state creates more jobs, more people are entering the labor force, keeping the unemployment rate just below 6 percent.
Indiana's unemployment rate dropped to 6.9 percent last month, but the state's private sector lost 4,800 jobs.
The private sector added 5,900 jobs in Indiana, but the state's unemployment rate held at 8.4 percent, which is a full percent higher than the national rate.
The Indiana Economic Development Corporate has set a goal of helping the state's private sector to employ more than 2.5 million people.
The private sector added 9,000 jobs in May, the largest single-month increase in more than a year.
Indiana's unemployment rate remained at 8.7 percent in March, after rising for several months, but also shed 11,000 private sector jobs.