Indiana’s unemployment rate decreased 0.7 percent in August to 9.9 percent, the Indiana Department of Workforce Development reported today.

Porter, Jasper and Newton counties all had local unemployment rates lower than the state average, while Lake, St. Joseph, LaPorte and Starke all had higher unemployment rates than the rest of Indiana:

• Starke: 13.7 percent
• LaPorte: 11.2 percent
• St. Joseph: 11.0 percent
• Lake: 10.1 percent
• INDIANA: 9.9 percent
• Total U.S.: 9.7 percent
• Newton: 9.4 percent
• Jasper 8.9 percent
• Porter: 8.7 percent

The decrease of 0.7 percent from July marks the largest decrease in unemployment month-to-month since a 2.1 percent decline from June to July in 1993. The national unemployment rate increased in August 0.3 percent to 9.7 percent.

“Decreases in unemployment are always welcome news. We hope it’s a trend but data from two key factors used to determine employment levels – surveys of individual households and business payroll – appear to contradict each other,” cautioned Teresa Voors, Commissioner of the Indiana Department of Workforce Development. “The next few months should provide evidence of a trend or a one-month survey anomaly.”

Indiana’s monthly survey of individual households showed 24,000 fewer unemployed Hoosiers; however, a separate survey of business payroll reported 21,000 fewer jobs. Traditionally, one would not expect to see a drop in unemployment and jobs. A decrease in jobs would lead to an increase in unemployment or visa versa.

Indiana’s neighboring states reported smaller monthly changes in unemployment. The unemployment rate in Illinois dropped 0.4 percent to 10.0 percent. Ohio’s unemployment rate also decreased 0.4 percent to 10.8 percent. Kentucky remained flat at 11.1 percent. Michigan increased 0.2 percent to 15.2 percent.

The state’s seasonally-adjusted unemployment rate peaked at 12.8 percent in November 1982. Indiana’s unemployment rate stood at 6.0 percent in August 2008.