California's unemployment rate fell to 8.5 percent last month, federal officials said today, a tenth of a point decline from a month earlier. Sacramento area unemployment rose despite a big gain in payroll jobs.
The state added 30,200 jobs during June, according to date released by the U.S. Bureau of Labor Statistics. That was a big improvement over the 16,800 jobs gained in May.
In Sacramento, the unemployment rate jumped back up to 8.5 percent, from 7.8 percent in May. But the region recorded strong job growth, with 7,800 jobs added during the month.
Analysts generally regard the payroll statistics as more relevant than the unemployment rate. The two figures are produced by separate surveys.
Much of Sacramento's job growth came from the leisure and hospitality sector, which added 3,700 jobs.
The construction industry added 2,100 jobs - the biggest increase in June since 2006.
California's unemployment rate has now fallen 2.1 percentage points in the past year, more than any other state. The state has added 253,900 jobs in that time, second only to Texas (303,000).