California sets new low unemployment record in July

SACRAMENTO, Calif. (AP) — California's unemployment rate fell to 3.9% in July, the lowest point since 1976 as employers in the the nation's most populous state continued to defy expectations by adding 84,800 new jobs.

Record-high inflation coupled with a cool-down in the housing market have prompted warnings of an economic slowdown as consumers react to high prices for goods from groceries to gasoline.

But new numbers released Friday by California's Employment Development Department show its labor market has so far been immune from those issues, as the state has had month-over-month job growth in 17 out of the last 18 months.

Nationwide, unemployment rates dropped in 14 states in July, rose in three states and stayed the same in 33 states, according to the U.S. Bureau of Labor Statistics. California now has a slightly lower unemployment rate than Texas, but is higher than Florida and Alabama — all Republican-led states whose leaders California Democratic Gov. Gavin Newsom has feuded with in recent months.

Ten of California's 11 industry sectors had job growth in July, led by big gains in computer systems design, advertising, security services and health care. While California makes up 11.7% of the nation's civilian labor force, the state accounted for 16.1% of all new jobs in the U.S. last month.

That job gain is despite job postings declining in the state and sales of single-family homes — a major driver of California's economy — slowing 14.4% in July compared to June and down 31.1% from a year ago, according to the California Association of Realtors. California's housing market reflects an overall slowdown in home sales nationally, which declined in July for the sixth straight month.

“It's certainly surprising,” former EDD Director Michael Bernick said of...