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Unemployment rate unexpectedly rises to 8.7% in July

Unemployment rate unexpectedly rises to 8.7% in July

California’s jobless rate inched higher in July, ending five months of falling rates, according to the state Employment Development Department.

The jobless rate increased to 8.7% in July, compared to 8.5% in June and 10.6% in July 2012. However, the state added 38,100 jobs in July, and gained 807,700 positions since the recovery started in February 2010.

Seven categories – including manufacturing, transportation, information, professional services, and education and health services – combined to add almost 50,000 jobs last month. Professional services added the most, with 15,000 positions.

Construction and government cut about 11,400 jobs in July, with construction – a bright area in recent months – eliminating 7,300 positions.

The Bay Area continues to enjoy the lowest jobless rates, with Marin at 5.3% in July. San Mateo and San Francisco followed at 5.7% and 5.9%, respectively.

Despite a better economy and job creation, more than half of the state’s 58 counties reported double-digit jobless rates in July. Agriculture-dependent Imperial County had the highest rate at 26.1%. The county has 19,800 job-seekers, more than double the number in larger Marin County.

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