Jobless rates up in 28 states, down in only 8, in July

Unemployment rates rose in more than half the states in July and fewer states added jobs, echoing national data that show the job market may have lost some momentum.

The Labor Department reported Monday that unemployment rates increased in 28 states. They were unchanged in 14 and fell in eight - the fewest to show a decline since January.

Hiring increased in 32 states in July compared with June, the fewest to report job gains in three months. Seventeen states reported job losses. California, Georgia, and Florida reported the largest job gains, while New Jersey and Nevada lost the most.

Nationwide, hiring has been steady this year but slowed in July. Employers added 162,000 jobs, the fewest since March. The unemployment rate fell to 7.4 percent, a 41/2-year low, from 7.6 percent.

The job market has improved over the last 12 months, but the gains appear to be benefiting Southern and Western states most of all.

Unemployment in the West fell to 7.9 percent in July, down from 9.3 percent a year earlier and the biggest decline of the four regions. In the South, unemployment fell to 7.3 percent, from 7.8 percent a year ago.

Unemployment barely dipped in the Midwest, to 7.3 percent from 7.5 percent in the last year. In the Northeast, it fell to 7.6 percent from 8.4 percent.

Steve Cochrane, an economist at Moody's Analytics, said Southern and Western states have seen steady growth in manufacturing jobs. The South is benefiting from lower taxes and cheaper labor.

"Some of the old, long-standing comparative advantages are reemerging as drivers of growth," Cochrane added.

California propelled much of the gain in the West, adding 38,100 jobs in July to lead all states. It has added 236,000 jobs in the last year, second only to Texas' 293,000 jobs.

Unemployment in California fell to 8.7 percent in July from 10.6 percent 12 months ago, the biggest year-over-year drop.

Utah gained the largest percentage of jobs in the last 12 months, with gains in information technology, manufacturing and construction.

In the South, Texas, Florida and Georgia have been driving job growth. Georgia added 30,900 jobs in July, the second most of any state. Most gains were in categories that include transportation, utilities, retail, hotels, restaurants and amusement parks.

Nevada reported the nation's highest unemployment rate in July, at 9.5 percent.