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RALEIGH—A new Department of Labor report shows the state improperly spent $179 million in unemployment payouts.

Of that number, 36 percent was given to people who were not eligible to receive unemployment benefits. About 42 percent of the payouts went to people who accepted their benefits after returning to work.

Representative Garland Pierce of Scotland County said it is simply unacceptable.

“We dropped the ball, I don't know what we were doing to allow that much money to be not used properly, to give it to people who did not deserve it,” said Rep. Pierce.

The new leader of Division of Employment Security Dale Folwell began his first day at the post Thursday. Folwell said he vows to put a stop to the fraud.

“We want to stop waste, fraud and abuse, we know there is a lot of it and we think we have the opportunity to do that with the new governor,” said Folwell.

One of the top items on Governor Pat McCrory's agenda is putting North Carolinians back to work. Folwell said that is a small step to solving the problem.

The more people are employed, the less need there will be for unemployment

The report also showed North Carolina's unemployment rate between 2010 to 2012 was at 9.98 percent, a bit of a decline compared to the last three-year period.

Nationally, the state is in the middle.