Up to 432 state unemployment workers will be laid off by October because of a drop in new unemployment claims, state officials confirmed Tuesday.

The workers are at unemployment offices statewide that have experienced a drop-off in new claims in the improving economy, according to Steve Arwood, director of the Michigan Unemployment Insurance Agency.

"Our initial claims load is what we look at, and our initial claims are way, way down," Arwood said Tuesday.

The agency has sent notices to 177 temporary workers notifying them they will be laid off Aug. 31, he said.