The Department of Technology, Management & Budget said Thursday that the statewide unadjusted jobless rate was 8.7 in August, compared with 9.7 percent in July.
The one percentage point drop follows a three-tenths of a percentage point gain from June to July.
The department said the jobless rates declined due to seasonal workforce reductions, as fewer workers sought employment. Payroll jobs increased in manufacturing and professional and business services during the month as workers were recalled from short-term retooling layoffs in the auto industry.
The largest rate decreases came in the Monroe and Flint areas.
The state said all of Michigan's 17 major labor markets reported jobless rates of 10 percent or lower.