The California Employment Development Department reported on Friday that the state's jobless rate climbed for a second consecutive month in August to 12.1 percent. Most of the decline, the agency said, was caused by a slowdown in the state's struggling construction industry. The unemployment rate had been in decline since March before reversing direction in July, when it climbed back up to 12 percent. At 12.1 percent, California's jobless rate is higher than any other state in the nation except Nevada, which is struggling to deal wit 13.4 percent unemployment.
According to the report, non-farm payrolls declined by 8,400 jobs in August, with 7,200 of those affecting the construction sector. While a second straight month of climbing unemployment is far from encouraging,, the rate is still below the 12.4 percent rate we were dealing with a year ago. Since last August, California has gained 171,000 jobs, while 2.2 million Californians remain unemployed.
The report showed job losses in August in construction, information, financial services, education, health services, other services and government. Jobs were gained, meanwhile, in the industries of mining, logging, manufacturing, trade, transportation, utilities, professional and business services, and leisure and hospitality.