State’s Jobs Growth Hits Crisis Point

Connecticut lost 3,500 jobs in November, extending a five-month slide that now marks a crisis point for the state’s struggling economy.
The state has lost 15,300 jobs since reaching a post-recession employment high in June—a trend that stands in stark contrast to what’s happening in the region and the country.

CBIA economist Pete Gioia noted that after an encouraging start to 2017, Connecticut’s year-over-year job growth is now flat.
The New England states average 1.2% growth over the last 12 months, while U.S. growth is at 1.4%.
“You can’t deny the fact that we now have a full-blown crisis in jobs,” Gioia said.
“It’s difficult to define the glass as half full when we see continued job losses like this.”

Bold Reforms Needed

The state Department of Labor also reported that the unemployment rate rose one-tenth of a point in November to 4.6%, the highest in the region and above the U.S. rate of 4.1%.
Connecticut has recovered only 70% of all jobs lost during the 2008-2010 recession and is one of just a handful of states yet to reach the expansion point.
“We need bold reforms to jump start our stalled economy, and we need a retooling of our jobs pipeline,” Gioia said.
“We know there are many thousands of jobs in manufacturing, trucking, building trades, and certain financial services that are going begging, so it’s important that the administration, the legislature, and the private sector work closely together to supply employers with the skilled employees they need.”

Connecticut's labor force also declined in November by 3,700 people, the fifth consecutive monthly drop.
Gioia noted that the state's newly formed Commission on Fiscal Stability and Economic Growth, charged with developing specific recommendations for fixing the economy, will report to the legislature on March 1.
"Hopefully, this group can amplify the call for the kind of reforms we need to generate much-needed jobs growth," he said.

Industry Sectors

Private sector employers shed 3,300 positions in November and have dropped 12,300 jobs since June.
Only two of the state's 10 industry sectors posted employment gains last month, led by other services with 1,300 new positions.
Financial activities added 700 jobs while the education and health services sector was unchanged for the month.
Leisure and hospitality led all losing sectors, dropping 2,000 positions.
Professional and business services lost 1,400 jobs, followed by construction and mining (-1,300), trade, transportation, and utilities (-400), government (-200), information (-100), and manufacturing (-100).
Two of the state's six labor market areas saw modest jobs growth in November. Danbury added 400 positions while Waterbury gained 100 jobs.
Norwich-New London-Westerly dropped 1,100 jobs, followed by Bridgeport-Stamford-Norwalk (-900), New Haven (-700), and Hartford-West Hartford-East Hartford (-300).
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