LANSING (WKZO) -- More than 400 state unemployment workers face layoffs as Michigan's economy improves.

The Michigan Unemployment Insurance Agency sent layoff notices to 177 temporary workers this week, notifying them that they'll be laid off by August 31st.  According to agency Director Steve Arwood, 255 full-time workers will be let go by October.

Arwood says that the workers are no longer needed because new jobless claims are down 50-percent since unemployment peaked at just over 14-percent in 2009.