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Montana Gov. Steve Bullock says the state is outpacing most others in terms of wage increases, but faces challenges in transforming its economy as industries such as mining and utilities contract.

Bullock on Tuesday released the administration's annual Labor Day report on Montana's economy.

The Democratic governor touted an unemployment rate that's hovered around 4 percent in recent years and wage growth that's the fourth fastest in the nation.

The report showed declines in 2017 for the mining, utilities, manufacturing and agriculture industries.

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However, those losses were offset by $251 million in growth in the health care industry and gains in financial services and leisure activities.

Across all industries the state added 4,600 new jobs last year.

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