Bakers working in North American state (8)
I believe the answer is:
nebraska
'state' is the definition.
(Nebraska is an example)
'bakers working in north american' is the wordplay.
'working' indicates an anagram.
'in' is an insertion indicator.
'north american' becomes 'na'.
'bakers' anagrammed gives 'ebrask'.
'ebrask' placed within 'na' is 'NEBRASKA'.
(Other definitions for nebraska that I've seen before include "Wading bird" , "State of central US" , "State N. of Kansas" , "Find snake bar in this US state" , "location of Lincoln" .)