Reporting from Sacramento— California's unemployment rate increased in July while job creation slowed to a crawl, fueling fears that the state's fragile recovery is faltering. The jobless rate last month ticked up to 12% from 11.8% in June, according to figures released Friday by the state Employment Development Department. California now has the second-highest rate of unemployment in the nation, trailing only Nevada at 12.9%, and its jobless rate is well above the U.S. average of 9.1%. The July hiring picture was bleak. California employers added just 4,500 new jobs last month, a steep drop from the revised 30,400 jobs...