On Friday, California released its jobs report for the month of June, which showed a higher unemployment rate from the month of May, despite an overall net increase in jobs.
In June, California added 40,300 net jobs, 8,700 of which were in Los Angeles County. The unemployment rate, however, increased from 5.2 percent in May to 5.4 percent in June.
Increases in the minimum wage, new mandatory paid sick leave, and laws that increase liability for labor violations have also been said to have made the state’s economy less friendly for employers.
California’s economy has been on a roll, which is made evident by the fact that over the past 12 months, the Golden State has added 461,000 jobs. This represents a growth rate of 2.9 percent, which is faster than the national rate of 1.7 percent.
In June, seven industries added 49,900 positions. The hospitality and professional services sectors led the pack, despite beliefs that the latter will be most affected by increases in the minimum wage.
The trade and information sectors lost the most jobs overall, cutting 3,600 positions during June.
The construction industry, one of California’s most prosperous sectors, has showed signs of slowing, with 32,300 positions added over the past 12 months– the 12 months prior to this saw 54,200 jobs added.