July Jobs Report: ‘Three Steps Forward, One Step Back’

Connecticut’s job growth lost momentum in July, as employers shed 1,200 positions after two months of relatively strong gains.
The state Department of Labor’s monthly report, released today, also revised down June’s originally reported 6,100 gain by 800 fewer jobs.
The state’s unemployment rate remained unchanged at 4.4%, a half-point higher than the national rate and the highest of the six New England states.
“We take three steps forward, and then one step back,” CBIA economic adviser Pete Gioia said.
“There’s no consistency or stability month-to-month with our jobs numbers and that’s what we really need to see for long-term growth in the economy.”
Nine-plus years after the 2008-2010 recession ended, Connecticut has recovered just 86% of the 119,100 jobs lost during the economic downturn.
That’s the slowest of the New England states, with Connecticut one of just a handful of states yet to reach full recovery.

Year-Over-Year Growth

Over the last 12 months, the state has gained 16,600 jobs, or 1%. However, employment still remains at 2007 levels.
“Our growth is good compared to what we’ve seen in the past, but compared to the U.S. and other Northeast states, we still lag,” Gioia said.
“Moving forward, the economy and jobs must be the top priority of all election candidates and policymakers.
“Connecticut needs leaders who will deliver steady, sustained growth.”

Gioia noted strong growth trends in the construction and manufacturing sectors.
While manufacturing saw modest losses in July, the sector continues to represent one of the economy's real areas of strength.
"Despite this month's loss in manufacturing, the sector, along with construction, is strong year-over-year," Gioia said.
"In contrast, the financial activities sector is down 1,000 jobs over the year and that's an industry we really need to see growth in to fully embrace an economic recovery."

Industry Sectors, Labor Markets

The state's private sector lost 1,000 jobs in July.
Six of the state's major industry sectors posted losses, led by trade, transportation, and utilities which ended the month with 1,300 fewer positions.
Professional and business services lost 900 jobs, followed by other services (-600), financial activities (-400), manufacturing (-300), and government (-200).
Year-over-year, manufacturing has added 4,200 jobs (2.6%). Construction gained 3,200 jobs in the last 12 months and leads all sectors in percentage terms (5.5%).
New Haven was the only labor market in the state to post gains in July, adding 800 jobs.
Hartford lost 1,300 jobs, followed by Bridgeport-Stamford-Norwalk (-300), Waterbury (-200), Norwich-New London-Westerly (-100), and Danbury (-100).