Michigan’s unemployment rate ticked up for the third straight month in August, as employment declined by 12,000 from July.

Seasonally adjusted unemployment in the Great Lakes State was up one-tenth of a percentage point over July to hit 4.5% in August as the national unemployment rate declined by the same. Michigan’s unemployment rate is now up 0.5% over the last year, as the civilian labor force has grown by 0.3%, according to data from the Michigan Department of Technology, Management & Budget.

“Michigan’s jobless rate advanced for the third consecutive month, primarily due to a decrease in statewide employment in August,” Wayne Rourke, labor market information director for the Michigan Center for Data and Analytics said in a statement. “Payroll jobs also dipped slightly in August and have fallen 19,000 over the last three months.”

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

Michigan’s labor force participation rate receded by one-tenth of a percentage point to 62.3% in August, after expanding in July to include the most workers since 2006. Employment was down 12,000 since then, while unemployment increased by 5,000, resulting in an overall workforce reduction of 7,000 in August.

The numbers are driven in part by employment in the Detroit-Warren-Dearborn Metropolitan Statistical area, which had an unemployment rate that went unchanged at 4.5% in August. Employment in the region was down 8,000, while the labor force declined by 7,000, according to the data.

Over the last year, the Detroit MSA jobless rate has increased by 0.7 percentage points, as employment fell by 18,000 and unemployment increased by 16,000.

Statewide, the labor force stood at 5,055,000, with 4,829,000 employed and about 226,000 unemployed. A year ago, 4,837,000 Michiganders were employed, and 202,000 unemployed, the data shows.

Go Ad-Free, Get Content, Go Premium Today - $1 Trial

“According to the monthly survey of employers, Michigan seasonally adjusted nonfarm payroll jobs fell by 2,000, resulting in a total job count of 4,488,000 in August,” the state reports.

Seasonally adjusted payroll estimates show employment in professional and business services, other services, and government each fell by about 1,000 from July, while employment in private education and health services was down 2,000.

Employment in construction; trade, transportation and utilities; and financial activities were each up about 1,000 jobs since July, while other industries remained flat.

An analysis by the personal finance website WalletHub shows Michigan’s August unemployment rate is the 10th highest among the 50 states and District of Columbia, behind Alaska and Rhode Island at 4.6%, Kentucky, Washington and New Jersey at 4.8%, Illinois and California at 5.3%, Nevada at 5.5%, and the District of Columbia at 5.7%.

The nation’s lowest unemployment rate is in South Dakota at 2%, while the national rate for August is 4.2%.

A separate WalletHub analysis of unemployment claims found Michigan ranked first in the nation for individual claims per 100,000 workforce members for the week ending July 22. The state also ranked second for the biggest increase over the week prior.

The state’s unemployment rate continues its upward trajectory as Democrats in control of the Michigan Legislature consider legislation to expand benefits from what’s currently 20 weeks to 26.

House Bill 5827, sponsored by Detroit Democratic Rep. Karen Whitsett, cleared the lower chamber on a party-line vote in late June, when it was referred to the Senate Committee on Labor.

If approved, it would reverse reforms signed into law by Republican Gov. Rick Snyder in 2011, Michigan Advance reports.

“When you look at 20 weeks, that’s really not a long time; 26 weeks definitely is something that is necessary to happen,” Whitsett told the news site.

Republicans who oppose HB 5827 aimed to include reforms to restrict the state’s unemployment system from changing how it investigates fraud following issues during the pandemic, but were rejected by the House’s Democratic majority.

“The unemployment director made excuses for all the fraud the agency paid out during the pandemic, because the agency transferred investigators to other roles and rolled back safeguards to get payments out the door faster,” Rep. Mike Harris, R-Waterford, said in June. “My plan will ensure that the unemployment agency doesn’t roll back key fraud protections without approval from the people’s representatives.”

Michigan Auditor General Doug Ringler issued a series of five reports detailing fraud, delays and mis-payments by the Michigan Unemployment Insurance Agency during and after the pandemic. The final report in December found $245.1 million in potentially improper payments to folks who were dead, behind bars, or who did not qualify, including UIA employees, according to The Detroit News.

Prior audits and investigations estimated the state paid out more than $8.3 billion in improper unemployment claims, including at least $5.6 billion to suspected fraudsters, amid the pandemic.