http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ_TwYLfIm0w Jobless Rates Rise in 26 U.S. States; Californiaâs Hits 11.9% Share | Email | Print | A A A By Timothy R. Homan and Alison Sider Aug. 21 (Bloomberg) -- Unemployment rates rose in 26 U.S. states in July, a sign the labor market will take time to mend and budget crises in capitals across the nation may deepen. California, Nevada, Rhode Island and Georgia all reached their highest level of joblessness since records began in 1976, with Californiaâs rising to 11.9 percent from 11.6 percent the previous month, the Labor Department reported today in Washington. The number of states with at least 10 percent unemployment held at 16. The figures are a blow to states already hammered by falling income and sales-tax receipts and underscore economistsâ projections that the national unemployment rate will reach 10 percent by early next year. Companies will probably trim payrolls at a slower pace in coming months as factories and the housing market show signs of stabilization. âThe labor market remained very soft, albeit not nearly as weak as it was during the first half of the year,â Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. âThe labor market is still deteriorating but the pace of deterioration has become much less severe.â To contact the reporters on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net; Alison Sider in Washington at asider@bloomberg.net Last Updated: August 21, 2009 10:29 EDT