LANSING (AP) Ann Arbor had the state"s lowest seasonally adjusted unemployment rate in September, the state Department of Career Development said yesterday.

Ann Arbor was one of only five of Michigan"s 12 major labor markets that did not see unemployment increases last month.

Seasonally unadjusted unemployment rates ranged from a high of 6.8 percent in Flint to a low of 2.8 percent in Ann Arbor. Jobless rates decreased in two areas and were unchanged in three.

State economists said the numbers don"t reflect the fallout of the Sept. 11 terrorist attacks, since unemployment data is collected each month during the week of the 12th, and few companies were laying off workers or making major changes that soon after the attacks. "The earliest any of that will show up is in our data for October," Detroit-based state economist Bruce Weaver said.

The unemployment increases were slight, limited to 0.4 percentage points or less. Employment gains at universities and schools were offset by cutbacks in tourism-related jobs, department Director Barbara Bolin said.

Slight declines in the unemployment rate were recorded in the Flint area, which had a 7.2 percent unemployment rate in August. Declines were expected, since temporary auto layoffs that affected Flint this summer have ended.

The Upper Peninsula also recorded a decrease in the unemployment rate from 4.7 percent in August to 4.4 percent in September. State economist Joe Billig said the Upper Peninsula"s seasonally dependent labor market generally shrinks in the fall, and those who lose summer jobs don"t necessarily look for other employment.

Billig said the numbers were typical for September, which generally sees increases in education-related jobs and decreases in construction and recreation. The number of manufacturing jobs also declined in September.

Billig said the terrorist attacks halted any sort of recovery the state was seeing.

"In August and September, there were some early signs that the economy was going to improve," he said. "But given September 11th and the very drastic slowdown in retail, the employment picture for the next few months is going to be much weaker than what people had expected."

The September unemployment rates for the 12 major labor markets, and their relationship to the August rates, were:

o Ann Arbor, 2.8 percent, unchanged from 2.8 percent

o Benton Harbor, 5.1 percent, up from 4.7 percent

o Detroit, 4.7 percent, unchanged from 4.7 percent

o Flint, 6.8 percent, down from 7.2 percent

o Grand Rapids/Muskegon/Holland, 4.8 percent, up from 4.7 percent

o Jackson, 5.0 percent, up from 4.8 percent

o Kalamazoo/Battle Creek, 4.4 percent, up from 4.1 percent

o Lansing, 3.1 percent, unchanged from 3.1 percent

o Saginaw/Bay City/Midland, 4.9 percent, up from 4.7 percent

o Upper Peninsula, 4.4 percent, down from 4.7 percent

o Northeast Lower Michigan, 5.9 percent, up from 5.5 percent

o Northwest Lower Michigan, 4.8 percent, up from 4.5 percent.