Jobs Slide Extends to Third Month
Connecticut extended its run of job losses to a third straight month in July, with year-to-date losses at 4,100.
Those losses are in stark contrast with the region and much of the country, where strong employment gains marked the first seven months of the year.
The state lost just 100 net jobs in July, with the private sector shedding 700 positions according to the Department of Labor’s monthly employment report.
CBIA economic adviser Pete Gioia said while the July report revised June’s initially reported losses up by 600 to a loss of 800, the year-to-date losses are a significant concern.
“We continue to lag the region and the nation,” Gioia said today.
“For the year, Connecticut is down 0.2% while Massachusetts is at 0.8% job growth and the U.S. overall is at 0.8% growth.”
Shrinking Labor Force
Connecticut has recovered 80% of the 120,300 jobs lost in the 2008-2010 recession, one of just a few states yet to reach the expansion point.
The state’s private sector has recovered 100% of jobs lost in the economic downturn.
Connecticut’s unemployment rate fell one-tenth of a point to 3.6% in July, the lowest since 2002.
Gioia said the drop in the unemployment rate is connected to the state’s shrinking labor force, which declined by 1,700 people in July.
Connecticut’s labor force has fallen by 14,900 people since the beginning of the year, a drop of 0.8%.
“Overall, we still have a great deal of challenges that must be addressed,” Gioia said.
Sectors, Labor Markets
Six of the state’s 10 major industry sectors added jobs in June, led by government, which gained 600 positions. That sector includes local, state, and federal government as well as employment at Connecticut’s two tribal casinos.
The information sector added 500 jobs, followed by other services (400), education and health services (300), financial activities (200), and trade, transportation, and utilities (100).
Leisure and hospitality led all losing sectors, shedding 1,000 positions in July.
Manufacturing lost 600 jobs and is now up a net 200 positions through the first seven months of the year.
Professional and business services fell by 300 jobs, as did the construction and mining sector.
Two of the state’s six main labor market areas posted gains in July, led by Bridgeport-Stamford-Norwalk with 1,100 new jobs.
New Haven added 700 jobs while Danbury was unchanged from June.
Waterbury and Norwich-New London-Westerly each lost 500 jobs while Hartford declined by 100 positions.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.