WASHINGTON – Unemployment rates fell in less than half of U.S. states last month, as steady but slow hiring is making only gradual improvement in the job market.

The Labor Department said Friday that rates fell in 22 states in December and rose in 16. They were unchanged in 12.

The department's monthly report also shows that steady hiring nationwide in the past two years has lowered the unemployment rate in many parts of the country. The rate is now below 7 percent in 25 states. And some of the states hardest hit in the recession have seen solid gains.