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Employment

Unemployment rate unexpectedly rises to 8.7% in July

Construction, government cut 11,400 jobs

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.