Connecticut Jobs Market in ‘Uncharted Territory’

Connecticut’s jobs market continued its rollercoaster ride in June, adding 6,300 positions after losing 4,200 jobs the previous month.

Approximately 3,000 of the May losses and June gains were attributed to the three-week strike by Pratt & Whitney machinists that ended May 27.

The state Department of Labor’s monthly employment report also highlighted that Connecticut has 80,000 unfilled job openings—including 15,000 new postings last week.

Labor department officials noted that “job growth isn’t as robust as 2024,” and cast a cautious eye toward the future.

“We’ve seen a break in the pattern of strong early year job gains, gains that gave us a cushion against end-of-year declines,” said DOL research director Patrick Flaherty.

“The bottom line is that June 2025 job numbers are higher than June 2024, but federal policy changes put us in uncharted territory. We continue to monitor Connecticut’s economy for impacts.”

Regional, National Picture

Connecticut’s 12-month job growth is 0.5%, 41st best among all states and third best in the New England region, ahead of Massachusetts (0.1%), Rhode Island (-0.1%), and Maine (-0.1%).

Vermont leads the region in year-over-year job growth at 0.9%, with New Hampshire at 0.6%. National job growth was 1.1% in June.

The state’s unemployment rate was unchanged in June at 3.8%, 26th lowest among all states.

Connecticut’s labor force—those working plus those actively looking for work—declined by 3,700 people last month and is just 1.3% above pre-pandemic levels, with job openings 14% higher than in February 2020.

The labor participation rate declined slightly in June to 64.8%, 15th best in the country.

‘Volatility’

CBIA president and CEO Chris DiPentima said that “the wild swings that we’ve seen in the jobs market highlight the volatility in Connecticut’s economy.”

“In the first six months of the year, we’ve gained a modest 2,600 jobs, spurred in part by gains in the public sector and healthcare industry,” he said.

“Connecticut’s economy contracted for the first time in over three years in the first quarter of 2025 amid tariff concerns, slower consumer spending, and labor market struggles.”

We have a great quality of life, an incredible education system, and one of the most productive workforces in the world," says CBIA's @ChrisDipentima. "We’ve just got to bring down the costs of living and doing business, so we can see more growth." https://t.co/tRYf0LrbYI

— CBIA (@CBIANews) July 11, 2025

DiPentima said he was particularly concerned with the state’s manufacturing sector, which lost 500 jobs in June after accounting for the impact of the machinists’ strike.

“Manufacturing employment is down by 3,200—or 2%—in the last 12 months and the sector has only recovered 35% of pandemic losses,” he said.

“That’s despite an estimated 7,000 open manufacturing jobs—reflecting the challenges employers face with an aging workforce and soaring housing and energy costs.

“While Connecticut has seen tempered growth—reflected by CNBC’s just-released 2025 America’s Top States for Business study—policymakers must address our long-standing challenges and enact solutions to make this a more affordable place to live, work, and do business.”

Industry Sectors, Labor Markets

Seven of Connecticut’s 10 major industry sectors posted employment gains in June, led by the strike-impacted manufacturing sector, which added 2,500 net jobs.

Leisure and hospitality added 1,600 jobs (1%) and has now recovered all pandemic job losses.

The professional and business services sector gained 1,100 positions (0.5%), followed by government (1,000; 0.4%), education and health services (400; 0.1%), other services (300; 0.5%), and information (200; 0.7%).

Trade, transportation, and utilities led all losing sectors, dropping 400 jobs in June (-0.1%).

Financial activities lost 300 jobs (-0.3%) and employment in the construction sector declined by 100 (-0.2%).

All five of the state’s major labor market areas posted gains in June, led by Hartford-West Hartford-East Hartford, which added 4,000 jobs (0.7%).

Bridgeport-Stamford-Danbury gained 1,000 jobs (0.2%), followed by Waterbury-Shelton (900; 0.6%), New Haven (900; 0.3%), and Norwich-New London-Willimantic (200; 0.2%).