California Unemployment Hits 6.2%; Worse than Ohio, Pennsylvania (Marc Lifsher)

Unemployed Actor

SACRAMENTO — California's unemployment rate rose by a whopping half a percentage point in March, reaching 6.2% as a weakening economy shed jobs in the ailing construction and financial activities sectors. In all, 1.13 million were unemployed.

The Economic Development Department reported that March's unemployment was the highest since July 2004, when the rate was also 6.2%.

Unemployment is up 1.2% from a year ago, with 229,000 more Californians looking for work.

Although total nonfarm jobs increased by 1,000 compared to February, the number of unemployed people rose by 84,000 last month, the state said.

"This is a huge increase," said Howard Roth, chief economist for the state Department of Finance. He blamed the steady rise in joblessness -- up from 5.0% in March 2007 -- on deterioration of the crucial housing market. "The bubble has a slow leak, so it's hard to tell how long it will take" to fully deflate, he said.