Job Growth Run Extends to Six Months

Connecticut added 3,300 jobs in June—almost half coming from the government sector—to extend the state’s current job growth run to six consecutive months.

Private sector employment grew by 1,700 (0.3%) and is at a historic high of 1,476,600 jobs, up 0.7% from the December 2018 peak.

The Department of Labor’s monthly employment report also revised May’s initially reported gain of 4,700 jobs down to 4,100.

Connecticut’s labor force declined in June after five consecutive months of growth, with 1,100 people (-0.06%) dropping from the population of those either working or looking for work.

The state’s labor participation rate fell slightly to 64.6%, 18th best in the country and two points higher than the national rate.

The unemployment rate fell four-tenths of a point in June to 3.9%, second highest in the region and 33rd best of all states.

Growth Trends

Connecticut has gained 17,900 net new jobs (1.1%) through the first six months of 2024 and 12,000 over the past 12 months.

The state’s year-over-year job growth rate is 0.7%, 42nd best in the country, with the national average at 1.7%.

New Hampshire’s 12-month growth is 1.6%, the best of the New England states and 18th best in the U.S.

Maine’s growth rate is 1.2% (31st), followed by Rhode Island (1.1%; 34th), Massachusetts (1.1%; 36th), Vermont (0.8%; 39th), and Connecticut.

CBIA president and CEO Chris DiPentima said while it was “heartening to see Connecticut’s economic momentum continue,” the pace of growth “must improve to meet the economy’s needs.”

“Our year-over-year job growth still trails the U.S. and all our neighbors in the Northeast,” he said.

Labor Force

Connecticut has recovered 105% of the historic 298,300 jobs lost to pandemic shutdowns and restrictions in March and April of 2020.

Maine leads the region at 119%, followed by New Hampshire (118%), Connecticut, Rhode Island (103%), Massachusetts (101%), and Vermont (97%). The U.S. recovery rate is 129%.

Connecticut’s labor force remains 17,700 people (-0.9%) below pre-pandemic levels, with approximately 1.2 job openings for every unemployed person.

“We must embrace solutions—such as those in CBIA’s 2024 Transform Connecticut policy priorities—to connect the more than 74,000 people looking for work with the state’s 90,000 job openings,” DiPentima said. 

“As CNBC’s just-released America’s Top States for Business rankings reminds us, Connecticut’s high cost of living and high cost of doing business hamper population, job, and economic growth. 

“It’s critical that policymakers focus on accelerating the pace of job growth, lowering the cost of living, and making Connecticut a more affordable and attractive place to do business.”

Industry Sectors, Labor Markets

Employment increased in five of Connecticut’s 10 major industry sectors in June, led by education and health services, which added 1,800 jobs (0.5%).

The government sector gained 1,600 positions (0.7%), followed by leisure and hospitality (1,500; 1%), financial activities (700; 0.6%), and manufacturing (300; 0.2%).

The trade, transportation, and utilities sector was unchanged for the month.

Professional and business services sector employment declined by 1,100 (-0.5%), with other services losing 1,000 jobs (-1.6%). Information lost 400 jobs (-1.3%) and construction fell by 100 (-0.2%).

Four of the state’s six major labor market areas posted gains in June, led by Hartford-West-Hartford-East Hartford with 2,300 new jobs (0.4%).

New Haven added 1,000 positions (0.3%), followed by Bridgeport-Stamford-Norwalk (900; 0.2%) and Danbury (300; 0.4%).

Waterbury lost 300 jobs (-0.4%) last month and Norwich-New-London-Westerly declined by 100 (-0.1%).