The state's labor market slowed in August as California employers added only 12,000 nonfarm jobs last month, the 13th straight month of net job gains.
The unemployment rate dipped slightly, to 10.6% from 10.7%, according to the U.S. Bureau of Labor Statistics.
Employers across six industries added jobs, with education and health services posting the largest over-the-month increase with 8,900 jobs. The leisure and hospitality industry added 4,400 jobs.
California employers shed jobs in other industries such as professional and business services, which lost 2,300 jobs. The steepest job losses, however, were in government, which shed 7,400 jobs last month.
The report also showed that the state's labor force shrunk by 77,100 in August as job seekers stopped actively looking for work.