Latest report on unemployment in September

Fewer states posted an increase in unemployment in September, even as the national rate of 9.8% hit a fresh 26-year high.

Jobless rates increased in 23 states and the District of Columbia last month, according to a report released Wednesday by the Labor Department.

Additionally, 19 states posted a decrease in unemployment, and eight states had rates hold steady in September.

By comparison, in the previous month 27 states and the District of Columbia recorded month-over-month unemployment rate increases.

Michigan remains the hardest hit at 15.3%. Nevada was next with 13.3% unemployment, followed by Rhode Island at 13% and California, at 12.2%.

Florida, which had 11% unemployment, as well as Nevada and Rhode Island all posted the highest unemployment rates on record since the survey of states began in 1976.

A total of 15 states reported jobless rates above 10% in September, according to the federal data.

Unemployment benefits. Even as the economy has started showing some signs of turnaround, unemployment has remained a persistent problem. The national unemployment rate is widely expected to push above 10%. Nationwide, September marked the 21st consecutive month that the total number of workers on payrolls shrunk -- a period during which 7.2 million jobs were lost.

Meanwhile, Congress is debating measures that would offer extended lifeline benefits to the unemployed. Benefits for hundreds of thousands of jobless Americans have expired in recent weeks with thousands more falling off the rolls ever day. A month ago, the House approved an extension but the Senate has not yet voted on it.

In the Senate proposal, unemployment benefits would be extended by up to 14 weeks in every state and then another six weeks on top of that in states where the unemployment rate tops 8.5%. Currently, states topping 8% now offer up to 79 weeks of benefits, said Chad Stone, chief economist of the liberal Center for Budget and Policy Priorities. States with rates between 6% and 8% now offer up to 59 weeks. And all other states currently offer up to 46 weeks.

Lowest rates: North Dakota again posted the lowest jobless rate in September, at 4.2%. It was followed by South Dakota, with 4.8%; Nebraska, at 4.9%; and Utah, at 6.2%. Five states were tied for the next lowest rate of 6.7%.

Annual increases: All 50 states and the District of Columbia reported an increase in unemployment compared with September 2008.

Michigan reported the biggest year-over-year jump, at 6.4 percentage points.

Monthly decreases: Nineteen states reported declines in joblessness from August. Minnesota and Ohio each posted the biggest declines, at 0.7 percentage points, while rates in Oregon and Wisconsin both dipped by 0.5 percentage points.

Source: CNNMoney.com