Job, Labor Force, Wage Gains Mark New Year

Connecticut employers added 2,300 jobs in January, led by strong gains in the professional and business services and financial activities sectors.

The state Department of Labor’s January employment report revised overall 2024 job growth slightly higher—by 200 positions—for an annual gain of 20,100 (1.2%).

That marked four straight years of steady post-pandemic growth, with gains of 3.6% in 2021, 1.9% in 2022, and 1.5% in 2023.

U.S. employers added an overall 4.14 million jobs last year (2.5%).

Released March 14, the report also showed that 30,379 people (1.6%) entered Connecticut’s labor force—those working and actively looking for work—over the past 12 months.

That’s an historic high for the state and ends a frustrating five-year period where the labor force remained below pre-pandemic levels, despite record job openings.

Wage Growth

CBIA president and CEO Chris DiPentima emphasized the importance of the labor force numbers to the state’s overall economic outlook.

“While there’s a still a gap between job openings—74,000—and the number of unemployed people, now 63,900, that’s been slowly closing in recent months,” he said.

“The labor force growth is the result of the growing commitment and partnership between the private and public sectors to focus on workforce development.

“However, it’s absolutely critical that we don’t let this momentum slip away—you cannot have economic growth without job growth.”

Connecticut wages also continued a pattern of strong growth, with average private sector weekly earnings increasing 5.1% over the last 12 months—outpacing inflation, which was 3% in January.

U.S. average private sector weekly earnings rose 3.6% over the past 12 months.

Cost Challenges

While most Connecticut industry sectors posted job gains in 2024, concerns remain for the state’s key manufacturing sector.

Manufacturing lost 1,700 jobs over the past 12 months (-1.1%)—despite an estimated 5,000 openings—as companies navigate an aging workforce and a lack of skilled workers.

DiPentima said the state’s high cost of living and operating a business remained significant economic obstacles for all sectors, with uncertainty over federal trade policy further compounding manufacturers’ concerns.

“Businesses and employees are bearing the brunt of increasing energy, healthcare, childcare, and housing costs.”

CBIA’s Chris DiPentima

“Connecticut businesses and employees are bearing the brunt of increasing energy, healthcare, childcare, and housing costs,” he said.

“Even as they deal with the high costs of doing business, Connecticut employers are stepping up and doing their part to grow and support their workforces.”

DiPentima said it was “vital that the state policymakers support businesses and their employees.”

“While there is a lot of uncertainty at the federal level, state lawmakers can positively impact residents and businesses by focusing on making Connecticut a more affordable place to live and work,” he said.

Industry Sectors, Labor Markets

Six of Connecticut’s 10 major industry sectors posted employment gains in January, led by professional and business services, which added 1,800 jobs (0.8%).

Financial activities gained 600 positions (0.5%), with year-over-year growth at 1,400 (1.2%)—a marked turnaround for the sector, which struggled tor regain jobs after the pandemic.

Trade, transportation, and utilities added 200 jobs (0.1%), followed by education and health services (200; 0.1%), and leisure and hospitality (100; 0.1%).

Manufacturing employment was unchanged for the month. The sector has only regained 54% of jobs lost to COVID-19 disruptions, while overall post-pandemic growth is now 106%.

Manufacturing has only regained 54% of jobs lost to COVID-19 disruptions, while overall post-pandemic growth is now 106%.

Construction lost 800 jobs (-1.3%) in January, with 12-month losses at 200 (-0.3%).

The information sector shed 100 jobs (-0.3%), as did other services (-0.2%).

Three of the state’s five newly redefined major labor market areas posted gains in January, led by Bridgeport-Stamford-Danbury with 400 jobs (0.1%).

Norwich-New London-Willimantic gained 300 jobs (0.2%) and New Haven added 200 (0.1%).

Hartford-West Hartford-East Hartford employment declined by 1,600 positions (-0.3%) and Waterbury-Shelton lost 100 (-0.1%).