Connecticut lost 600 jobs in July, signaling a seasonal slowdown that doubles as a reminder for lawmakers to focus on solving the state's budget problems.

Overall, Connecticut has regained 82% of the total 119,100 jobs lost during the recession.

July 2017 jobs report"We’re still up 11,600 jobs year over year, which is better than we've seen in recent years," said CBIA economist Pete Gioia.

In releasing the July jobs report, the Connecticut Department of Labor also revised down June's originally reported gain of 7,000 jobs to 5,600.

July's losses reinforce the need for lawmakers to focus on solving the state's budget crisis.

Connecticut is still without a two-year budget, almost two months into the new fiscal year.

"There's a telling need for policymakers to pass a budget without tax increases in order to encourage businesses to make investments here, rather than elsewhere," said Gioia.

The state's unemployment rate remained stable at 5% in July, the highest of the New England states. U.S. unemployment is at 4.3%.

Sectors, Labor Markets

Five of the state's 10 industry sectors posted growth in July, led by trade, transportation, and utilities with 2,200 jobs added.

Other services gained 1,000 jobs in July, followed by education and health services (800), financial activities (500), and the information sector (100).

Leisure and hospitality, which experienced a surge of growth in June, lost 2,000 jobs last month, signaling seasonal employment winding down.

The construction and mining sector shed 1,600, followed by government (-900) and professional and business services (-500).

Manufacturing lost 200 jobs, largely reflecting the sector's aging workforce.

We're seeing more manufacturing workers retire than we can replace.
— CBIA's Pete Gioia
"We're seeing more people retire than we can replace," Gioia said.

"This is not a Connecticut-only problem as we've seen this on the national level too."

Norwich-New London led all labor market areas last month with 1,200 jobs gained, and is now the fastest growing area in the state over the last 12 months in percentage terms (2,800 jobs, 2.2%).

Hartford-West Hartford-East Hartford gained 900 jobs and has added 4,800 jobs (0.8%) since July 2016.

Waterbury (600) and Danbury (500) added jobs in July as well.

Bridgeport-Stamford-Norwalk lost 1,100 jobs, followed by New Haven (-600).