"Some of the old, long-standing comparative advantages are re-emerging as drivers of growth," he added.
California has propelled much of the gains in the West, adding 38,100 jobs in July to lead all states. And California has added 236,000 jobs in the past year, second only to Texas's 293,000 jobs.
Unemployment in California has fallen to 8.7 percent in July from 10.6 percent 12 months ago - the biggest year-over-year drop of any state.
Another bright spot is Utah, which has gained the largest percentage of jobs in the past 12 months. Utah's gains were in information technology, manufacturing and construction.
In the South, Texas, Florida and Georgia have been driving job growth. Georgia added 30,900 jobs in July, the second most of any state. Much of the gains were in categories that include transportation, utilities, retail, hotels, restaurants and amusement parks.
Nevada reported the nation's highest unemployment rate in July, at 9.5 percent. It was followed by Illinois, 9.2 percent. North Dakota continues to have the nation's lowest unemployment at 3 percent. South Dakota is close behind at 3.9 percent.