Jobs Market Volatility ‘Hurting’ Economic Growth

Volatility continued to define Connecticut’s jobs market in May, with statewide employment declining by 6,500 jobs.

The state Department of Labor’s monthly employment report also reduced April’s initially reported gains by 2,100 to a net 4,800 jobs.

The three-week strike by 3,000 Pratt & Whitney machinists that ended May 27 influenced the May numbers.

CBIA president and CEO Chris DiPentima said that even when year-over-year job growth is adjusted to account for the strike, it remains half a point lower than national employment growth.

“May’s declines shine a bright spotlight on the immense volatility in Connecticut’s jobs market,” he said.  

“Even if we ignore last month’s strike, the modest job gains we made earlier this year have been erased, despite openings increasing to 80,000—3.9% over the previous month.”

Labor Force

Connecticut’s 12-month job growth is 0.1%, fifth slowest among all states and third slowest in the region, ahead of Massachusetts (0.1%) and Maine (0%).

New Hampshire, which has the sixth fastest job growth in the country, leads the region at 1.8%, followed by Vermont (1%) and Rhode Island (0.9%).

National year-over-year growth was 0.8% in May.

The state’s unemployment rate rose one-tenth of a point last month to 3.8%, 25th lowest among all states.

Connecticut’s labor force was essentially unchanged in May and remains 1.5% above pre-pandemic levels, with job openings 14% higher than in February 2020.

The labor participation rate rose slightly in May to 65%, 13th best in the country.

‘Wild Swings’

 “The stark reality of this report and the wild swings in the jobs market this year make it clear that Connecticut’s labor market struggles are holding back our economic potential,” DiPentima said.

“Key factors driving Connecticut’s stagnant economy—such as the high cost of living—went unaddressed once again by policymakers during the legislative session. 

“Despite the session ending, it’s critical that public and private sector leaders work closely and identify creative, sustainable solutions for making this a more affordable and attractive place to live, work, and do business.” 

Connecticut's Q1 GDP declined 0.9%—27th in the country—amid tariff concerns, slower consumer spending, and ongoing volatility in the state's jobs market. New England's economy shrank 0.8%, with national GDP down 0.5% as just 11 states saw economic growth. https://t.co/PN2eCYaUyC pic.twitter.com/uIYo3YkN12

— CBIA (@CBIANews) June 27, 2025

Connecticut workplaces remain relatively stable, with the voluntary quits rate at 1.8%, two-tenths of a point below the national rate and ninth lowest in the country.

Private sector average weekly earnings growth is also keeping pace with national trends—3.8% year-over-year compared to 3.9% nationally. 

Average private sector weekly earnings in the state are now $1,298.59, 4.5% higher than the U.S. average.

Industry Sectors, Labor Markets

Only two of Connecticut’s 10 major industry sectors posted employment gains in May, led by construction and mining with 900 new jobs (1.4%).

Leisure and hospitality added 200 jobs (0.1%), while the government and information sectors were unchanged for the month.

Manufacturing led all losing sectors, with the Pratt & Whitney machinists’ strike accounting for about 3,000 of the sector’s 3,600 lost jobs in May (-2.3%).

Adjusting the data to reflect the machinists’ return to work, manufacturing still has recovered just 40% of pandemic losses, with year-over-year losses at 2,900 (-1.9%).

Trade, transportation, and utilities lost 1,800 jobs last month (-0.6%), followed by professional and business services (-1,700; -0.8%), other services (-300; -0.5%), financial activities (-100; -0.1%), and education and health services (-100; -0.03%).

All five of the state’s major labor market areas lost jobs in May, led by Hartford-West Hartford-East Hartford, which declined by 3,200 positions (-0.5%).

Bridgeport-Stamford-Danbury lost 1,100 jobs (-0.3%), followed by New Haven (-500; -0.2%), Waterbury-Shelton (-300; -0.2%), and Norwich-New London-Willimantic (-100; -0.1%).