February Job Losses Reflect Ongoing Workforce Challenges

Connecticut lost 1,200 jobs in February, with declines across all labor market areas and most industry sectors.

The Department of Labor’s monthly employment report also revised January’s previously reported 2,300 job gains down to 1,500 new positions.

The losses contrast with U.S. Bureau of Labor data showing 92,000 job openings in the state—or 1.4 openings for every unemployed person.

Connecticut has 31% more open positions than before the pandemic, while the labor force has only grown 1.3% over the same period, in stark contrast to most of the region and country.

“It’s unfortunate to see anemic job growth at any time, but particularly now as we continue to deal with the labor shortage,” said CBIA president and CEO Chris DiPentima. 

“We’re trapped in a frustrating holding pattern, despite the fact wages continue to grow, outpacing inflation and U.S wage growth.”

Regional, US Growth

Connecticut’s year-over-year job growth is just 0.8%, which trails national year-over-year growth of 1.2%.

New Hampshire leads the New England region at 1.1%, followed by Rhode Island (1.1%), Connecticut, Vermont (0.5%), Maine (0.4%), and Massachusetts (-0.2%).

Connecticut’s economy slowed in the fourth quarter, with DiPentima linking the slowdown to the state’s post-pandemic challenges, particularly the labor shortage.

“I see the GDP growth rate indicative of us not filling open jobs,” he said.

“Employers are offering high wages and benefits and a lot of flexibility, but they’re still not able to fill these openings.”

He noted that the state’s population grew 0.9% in 2024—second best in the region after Massachusetts (1%) and 18th best of all states.

“It’s positive to see population growth,” DiPentima said. “Hopefully, it’s working-age people who will help fill these job openings. If you fill the jobs, then you grow GDP.”

Wage Growth

Wages continue to increase, with Connecticut private sector weekly earnings increasing 5.7% over the last 12 months. Nationally, private sector wages are up 3.4% over the same period.

“It’s clear employers are doing everything they can to attract quality workers, but persistent systemic issues continue to be obstacles,” DiPentima said.

“From housing, to healthcare and energy costs, Connecticut is one of the most expensive states to live and do business. 

“Employers are doing everything they can to attract quality workers, but persistent systemic issues continue to be obstacles.”

CBIA’s Chris DiPentima

“It’s up to state policymakers to address those challenges, but the calendar is moving quickly—we’re already at the midpoint of the legislative session. 

“And unfortunately, this session has featured too many bills that make it more expensive and too few that make Connecticut more affordable for residents and businesses.

“Lawmakers must focus on solutions that will make Connecticut a more affordable and attractive place to live and work.”

Industry Sectors, Labor Markets

Just two of Connecticut’s 10 major industry sectors posted gains in February, with education and health services adding 900 jobs (0.2%) and professional and business services up 300 positions (0.1%).

Financial activities, government—which includes tribal casinos and state, local, and federal government employment—and other services were all unchanged for the month.

The leisure and hospitality sector posted the month’s largest declines, losing 700 jobs.

Manufacturing employment fell by 600 jobs (-0.4%), followed by trade, transportation, and utilities (-600; -0.2%), construction (-400; -0.6%); and information (-100; -0.3%).

Employment in all five of the state’s five major labor market areas declined in February, HartfordWest with Hartford-East Hartford losing 1,700 jobs (-0.3%).

Bridgeport-Stamford-Danbury lost 1,300 positions (-0.3%), followed by New Haven (-1,000; -0.3%), Shelton (-500; -0.3%), and Norwich-New London-Willimantic (-300; -0.2%).