Friday's unemployment rate of was down from a revised 11.1 percent in August. The national jobless rate in September and August was 9.6 percent.
While the government sector picked up more than 14,000 jobs, the private sector was down more than 12,000.
Most of the private sector losses came in retail, leisure and tourism jobs as the summer tourism season wound down.
State Workforce Department executive director John Finan said consumer sentiment remains weak and is affecting demand for goods and services.
Marion County had the state's highest unemployment rate at 18.6 percent.