Topeka ? Kansans received mixed economic news Friday with state unemployment hitting 7.7 percent — the highest level in more than 26 years — while some officials indicated the grueling recession may be over.

But if activity at the Lawrence Workforce Center is any indication, the economy is still in bad shape.

Jay Pryor, a business consultant for Heartland Works Inc., which operates the center, said, “It has been consistently busy for months. We have seen a lot more highly educated people in the last six months” looking for jobs.

The 7.7 percent statewide jobless rate for July is the highest since January 1983, according to the Kansas Department of Labor. It represents an increase from 7.1 percent in June, and from 4.9 percent for July 2008.

Most major industries statewide have reported losses in jobs, with the largest decreases coming in manufacturing, professional and business services, trade, transportation and utilities, the Labor Department reported.

There were 28,359 initial claims for unemployment benefits in July, up from 25,767 in June. There were 208,715 continued claims for unemployment benefits in July, down from 242,385 in June, the labor agency said.

Record high monthly unemployment benefit payments has nearly depleted the Unemployment Insurance Trust Fund, which will force the state to borrow from the federal government to continue payments. Currently, 18 states are borrowing from the feds to cover jobless claims.

The Lawrence-Douglas County unemployment rate in July stood at 6.1. It was 6.2 percent in June.

Roger Zalneraitis, economic development coordinator for the city of Lawrence, noted that the local jobless rate remained well below the national rate of 9.4 percent.

He said college towns seem to be holding up better, probably because of the number of government jobs associated with higher education.

Zalneraitis said he believes the local economy is starting to improve, citing an increase in inquiries from companies about expanding or locating to the area.

“It’s not all bad news out there, that’s for sure,” he said.

That turning-the-corner sense seemed to coincide with some national developments.

Federal Reserve Chairman Ben Bernanke said that the economy was on the verge of rebounding, and home sales in July increased 7.2 percent, the largest monthly increase in 10 years.

But George Bittlingmayer, professor of finance and economics at the Kansas University School of Business, said problems remained ahead, especially in the financial sector.

“A lot of banks are still in deep doo-doo,” he said. “It’s still going to take a while to dig out.”