February jobless rate in the most populous state far exceeds national 8.1% unemployment rate.

SAN FRANCISCO (Reuters) -- California's unemployment rate increased to 10.5% in February from 10.1% in January as the most populous state's economy worsened, official data showed Friday.

California's February jobless rate far exceeded both the state's 6.2% rate a year earlier and the national unemployment average for February of 8.1%, according to the report by the state's Employment Development Department.

California lost 116,000 non-farm payroll jobs in February from January and 605,900 non-farm jobs from a year earlier, marking a 4% decrease in nonfarm payrolls, the report said.

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The U.S. financial crisis has battered California's economy, the world's eighth largest, which already had been slowed by a prolonged housing downturn.

The report noted that only one industry category tracked by state labor market analysts expanded payrolls in February from January - 7,900 new information industry jobs.

Ten industry categories posted job losses between the months, led by construction, which shed 30,900 jobs.

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