Ohio's unemployment rate fell to 10.1 percent last month, the fifth consecutive drop, according to state figures released Friday.
The rate slumped from 10.3 percent in July and from 10.7 percent from August, 2009, according to the Ohio Department of Job and Family Services.
The employment level decreased by 15,400 to just more than 5 million.
"We are cautiously optimistic that Ohio's job market will continue to improve," said Douglas Lumpkin, director of the state's job agency.
The number of unemployed also dropped by 13,000 to 601,000.
The U.S. jobless rate in August was 9.6 percent.