April Jobs Report Erases March Gains

Connecticut’s April employment report brought unwelcome news, erasing 90% of the 4,900 new jobs originally reported for March by the Department of Labor.

DOL officials cited a lower-than-usual response to the March survey of employers that is used to compile job growth numbers for the discrepancy.

“While it’s unusual to have such a wide swing from estimated numbers to the revisions, it’s a good example of why we look at data trends rather than focusing on one month,” said DOL research director Patrick Flaherty.

“Some months are stronger than others, but overall, Connecticut’s economy continues to steadily add jobs.” 

The latest monthly employment report also noted the addition of 1,100 jobs in April, with the government sector accounting for most of the preliminary gains.

Setback

Connecticut has gained 10,000 net new jobs (0.6%) through the first four months of 2024 and 21,600 over the past 12 months (1.3%).

CBIA president and CEO Chris DiPentima said the April report “highlights the volatility of Connecticut’s labor market.”

“While we are seeing growth, it’s clear that we aren’t keeping up with the rest of the region and the country,” he said.

“Connecticut’s year-over-year job growth is 1.3%, a half-point below the national average and trailing much of the region—Rhode Island, for instance, is at 2.6%, fourth best in the country.

“Coming out of a legislative session that showed a lack of focus on making Connecticut a more affordable place to live and work, it’s clear that we cannot take our foot off the gas.

“Addressing the labor shortage and our overall economic needs must be front-and-center heading into this fall’s critical General Assembly elections.”

Labor Force

Connecticut has recovered 102% of the historic 298,300 jobs lost to pandemic shutdowns and restrictions in March and April of 2020.

Maine leads the region at 117%, followed by New Hampshire (113%), Rhode Island (105%), Connecticut, Massachusetts (98%), and Vermont (98%). The U.S. recovery rate is 127%.

Connecticut’s labor force expanded for a fourth consecutive month in April, with another 600 people added to the numbers of those either working or looking for work.

The labor force remains 20,600 people below pre-pandemic levels, with approximately 1.1 job openings for every unemployed person.

The labor force remains 20,600 people (-1.1%) below pre-pandemic levels, with approximately 1.1 job openings for every unemployed person.

Connecticut was one of 13 states posting an increase in job openings in March, based on the U.S. Bureau of Statistics’ latest Job Openings and Labor Turnover report, released May 17.

DiPentima said the state’s 90,000 job openings represented a 34% increase over pre-pandemic levels.

“There are still more job openings than people looking for work—we need to do more to grow the labor force and connect people with opportunities through workforce development initiatives,” he said.

Industry Sectors, Labor Markets

Employment increased in seven of Connecticut’s 10 major industry sectors in April, led by education and health services, which added 1,000 jobs (0.3%).

The government sector gained 800 positions (0.3%), followed by financial activities (600; 0.5%), manufacturing (600; 0.4%), trade, transportation, and utilities (300; 0.1%), construction and mining (200; 0.3%), and information (100; 0.3%).

Leisure and hospitality posed the largest losses for the month, losing 1,200 jobs (-0.8%), with other services declining by 700 (-1.1%) and professional and business services down 600 (-0.3%).

Construction, education and health services, professional and business services, and trade, transportation, and utilities are the only sectors to have recovered all pandemic job losses.

Four of the state’s six major labor market areas posted gains in April, led by New Haven (0.3%) and Bridgeport-Stamford-Norwalk, which each added 800 jobs (0.2%).

Hartford added 500 positions (0.1%) while employment in Waterbury increased by 400 (0.6%).

Norwich-New London-Westerly lost 400 jobs (-0.3%) and Danbury declined by 100 (-0.1%).