Unemployment fell again in California last month, while job growth picked up in Sacramento at a rate not seen since before the recession.
California's unemployment rate fell a tenth of a point in June to 10.7 percent, the Employment Development Department said today. About 38,300 jobs were added across the state as the California recovery kept advancing despite signs of a slowdown on the national level. It was the second straight month of solid job growth.
Dennis Meyers, principal economist with the state Department of Finance, said he was encouraged that job growth was seen well beyond the tech sector, which has been carrying the state for the past year or so.
"The recovery is kind of broadening out," he said. Strong growth was reported in construction and the leisure and hospitality sector, he said.
In Sacramento, the unemployment rate jumped four-tenths of a point, to 10.8 percent. But analysts said a more reliable barometer was that payrolls grew by 9,400. It was the best one-month surge in jobs in Sacramento since May 2006, said EDD labor market consultant Justin Wehner.
He said the unemployment rate grew because of an influx of "kids exiting school, entering the labor force and looking for jobs." The job growth wasn't enough to keep pace with the students seeking work.
He noted that the Sacramento construction industry is showing signs of life, and 4,800 construction jobs were added in June. That's three times the usual hiring for the month, Wehner said.
California has added 475,300 jobs since fall 2009, a little more than one third of the jobs that vanished in the recession.
"We're still climbing out of a pretty deep hole," Meyers said.
Nevertheless, he noted that California added 147,700 jobs in the first six months of 2012. That was the best half-year run since 2005, he said.
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