Aug. 21--PROVIDENCE -- Despite early signs that the nation's economy may be recovering, Rhode Island still appears to be mired in the recession.

The state's unemployment rate climbed again, to 12.7 percent in July from 12.4 percent in June. The increase set another record since the federal government began tracking the number of jobless workers in 1976. The rate has been steadily rising -- since February 2007 -- for 30 straight months.

The latest unemployment rate in Rhode Island, released by the state Department of Labor and Training Friday, follows a report that the national rate had dropped slightly from 9.5 percent in June to 9.4 percent last month.

Other states experienced mixed fortunes in July. The jobless rate in Massachusetts rose from 8.6 percent in June to 8.8 percent. The rate in Michigan, the only state in the nation in June with a higher percentage of unemployed workers than Rhode Island, fell to 15 percent from 15.2 percent.

Rhode Island, however, lost another 2,300 jobs in July, bringing the total number of unemployed residents to 72,900, nearly a one-third increase over a year ago.

The news is not all bad for the state. The total labor force -- a number that includes the unemployed -- grew to 573,700, its highest level in more than two years. A rise of 1,700 in the number of employed state residents contributed to the overall jump in the labor force, although that growth was outpaced by the increase in unemployed workers.

But even the higher jobless rate could have positive implications. In calculating the unemployment rate, the state counts only people who are actively looking for work. Those who have dropped out of the job hunt aren't included. So a higher unemployment rate may signal hope if more people are looking for work rather than giving up the chase altogether.

That's a very real possibility and could indicate growing confidence in the economy, Sandra Powell, director of the Department of Labor and Training said in an interview. She described "glimmers of hope" -- including the higher number of employed Rhode Islanders, the third such monthly increase this year -- but was cautious in her assessment of the economy.

"Some indicators show that we are moving in a positive direction," she said. "Obviously, it's not enough to say that Rhode Island is out of a recession, but we do see a slowing in the economic decline."

Another piece of encouraging news is a rise in the number of jobs in the state. There were 900 new jobs in July, the first month-on-month increase since January 2008. It's a welcome development for a state that has lost 17,500 jobs over the past year.