California's unemployment rate fell to 10.6 percent in August, state officials today, although job growth was sluggish.
The Employment Development Department said payrolls grew by 12,000 last month as the unemployment rate fell a tenth of a point. In addition, the job growth figures for July were revised downward - to 17,900 from a previously reported 25,200. The new figures suggest the nationwide slowdown is starting to affect California.
In Sacramento, unemployment fell four-tenths of a percent, to 10.3 percent. Payrolls grew by 400 jobs.
The numbers "are still positive, but a little disappointing," said Dennis Meyers, principal economist at the state Department of Finance.
He said the slowdown in the U.S. economy appears to be finally affecting California. But he added that the biggest factor in the job numbers was a substantial drop-off in public sector jobs - a loss of 7,400 jobs from the month before.
"That's still the big anchor on the boat," he said.
Sung Won Sohn, an economist at California State University, Channel Islands, said, "The California economy is still improving - not strongly but at a decent pace."
Despite the drop in government jobs, key areas of the private sector continued to show strength, including construction. The construction industry in Sacramento added 1,800 jobs in August.
"It's been so far down for so long, it's finally beginning to pick up," said economist Jeff Michael of the University of the Pacific.
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