Rhode Island, Michigan tie for highest jobless rates

WASHINGTON (Reuters) - Rhode Island and Michigan had the highest unemployment rates of all U.S. states in October, at 9.3 percent, the Labor Department said on Friday in a report showing that jobless rates rose across the country.

Overall, 38 states and the District of Columbia saw increases in the seasonally-adjusted unemployment rate -- the percentage of the population without a job -- and seven states had no change in October. Only five states registered decreases.

A dozen states now have rates of 7 percent or more, compared to the national rate of 6.5 percent reported earlier this month. Regarding those states topping the unemployment list, Rhode Island's economy has been struggling for the past year as it sheds manufacturing jobs, and Michigan is home to the ailing U.S. auto industry.

At the other end of the scale, energy-resource rich South Dakota again recorded the lowest unemployment rate of 3.3 percent, matched by Wyoming. North Dakota was fast behind with unemployment at 3.4 percent.

Oregon recorded the largest over-the-month unemployment rate increase in October, while its northern neighbor Washington recorded the steepest loss in the number of jobs, a decrease of 29,300 positions.

The Labor Department said that Washington's payroll drop was mainly due to a strike of 27,000 aerospace workers at corporate giant Boeing.

Florida lost 27,300 jobs and California 26,400 in October.

(Reporting by Lisa Lambert, Editing by Chizu Nomiyama)