State officials say California's unemployment rate increased one-tenth of a percent last month to 6.9 percent as the slumping housing market continued to take a toll on the economy. The Employment Development Department says in its report released late last week that the number of Californians out of work rose by 19,000 people during the month to 1.28 million. The construction industry has posted the biggest job losses, shedding 164,500 jobs over the past year. California's unemployment rate stood at 5.3 percent in June 2007.