Unemployment Level Drops

WASHINGTON Unemployment dipped to 6.8 percent in July, the lowestlevel in 22 months, with the government reporting today that so far,the Midwestern floods have had little adverse impact on jobs.

In Illinois, unemployment dropped to 7.2 percent in July from 8percent in June and 8.2 percent in July, 1992.

But analysts greeted word of the improvement in the state'semployment picture with skepticism.

"Any month-to-month volatility you have to take with a littlegrain of salt," said Diane Swonk, an economist with First NationalBank of Chicago. "It's hard to get a true picture."

But, Swonk was impressed by reports that the unemployment dropcoincides …