Pasadena, CA -- (SBWIRE) -- 09/22/2011 -- According to the state Employment Development Department, the unemployment rate in California rose to 12.1 percent for the second consecutive month led by continued sluggishness in the construction industry.

Unsettled by stumbling recovery signs, the employers in the state have cut jobs pushing the jobless rate up from 12 percent in July. According to the analysts, employers are holding off hiring until they feel more confident about the future. This break in hiring might be a result of the European debt crisis, the recent stock market slide, and sluggish economic growth numbers.

Now, California's rate is the second highest in the nation, behind Nevada's 13.4. Nonfarm payroll jobs fell by 8,400 during the month, with the construction industry suffering the biggest decline, down 7,200 jobs. Even though there are about 171,000 jobs gained, there are 2.2 million people unemployed in California, a lot of whom drained their 99 weeks of unemployment benefits months ago. Industries like construction; information; financial activities; educational and health services; other services; and government lost 17,500 jobs in August.

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