July Brings Year’s Strongest Job Growth

Connecticut added 6,500 jobs in July, with the state’s government sector responsible for 60% of those new positions.

That marks the year’s strongest month for jobs, with the Connecticut Department of Labor also revising June’s initially reported 1,700 gain, adding another 1,300 jobs for that month.

CBIA president and CEO Chris DiPentima called the July report “encouraging,” noting strong gains across a number of sectors.

“We are encouraged to see the rebound in construction jobs after the previous month’s losses, along with solid growth in trade, transportation, and utilities, manufacturing, professional and business services, and educational and health services,” he said.

“July has historically been a strong month for job growth in the state and it’s critical that we sustain this momentum as the state continues its slow recovery from the pandemic.”

Pandemic Recovery

Connecticut has recovered 86% of the historic 289,400 jobs lost to pandemic disruptions in March and April of 2020, while the U.S. recovery rate hit 100% last month.

Maine leads the New England states with a 95% recovery rate, followed by New Hampshire (94%), Massachusetts (90%), Rhode Island (89%), Connecticut, and Vermont (79%).

CBIA's @ChrisDiPentima was encouraged by July's #jobs report, noting “it’s critical we sustain this momentum as the state continues its slow recovery. The worker shortage crisis remains one of our biggest growth obstacles." #RebuildCT #workforcesolutions https://t.co/SuNelPbR81

— CBIA (@CBIANews) August 18, 2022

Massachusetts leads the region in year-to-date job growth at 2.3%, just above the national average of 2.2%.

Rhode Island’s year-to-date growth rate is 1.7%, followed by New Hampshire (1.5%), Vermont (1.4%), Connecticut (1.4%), and Maine (1.3%).

Labor Shortage

DiPentima said the state’s 2022 job growth rate highlights “the need for a greater focus on addressing those obstacles to a faster recovery.”

While Connecticut’s unemployment rate dropped three-tenths of a point to 3.7% in July, the state’s labor force challenges continued, with the loss of 2,100 people last month.

Connecticut’s labor force has contracted by 51,600 people or 2.6% since February 2020—43% of the region’s losses and 8% of the U.S. decline.

“The worker shortage crisis remains one of our biggest growth obstacles,” DiPentima said.

“Connecticut has 105,000 job openings, and if every unemployed person was hired tomorrow, we’d still have 34,600 open positions.

“Policies that make Connecticut more affordable for residents and businesses as well as public-private collaboration, including the state’s recently launched CareerConneCT training programs, are critical to growing our labor force.”

Industry Sectors, Labor Markets

Six of the state’s 10 major industry sectors posted gains in July, led by government with 3,900 new jobs (1.7%).

Construction and mining added 1,500 jobs (2.5%), followed by trade, transportation, and utilities (800; 0.3%), manufacturing (700; 0.4%); professional and business services (500; 0.2%), and education and health services (400; 0.1%).

Leisure and hospitality declined by 600 jobs (-0.4%) to lead the four losing sectors.

Other services lost 400 jobs (-0.7%), followed by information (-200; -0.7%) and financial activities (-100; -0.1%).

Three of the state’s six main labor markets posted gains in July, led by Bridgeport-Stamford-Norwalk with 2,000 new jobs (0.5%).

New Haven gained 1,400 positions (0.5%) and Danbury added 900 jobs (1.2%).

Norwich-New London-Westerly shed 400 jobs (-0.3%), followed by Waterbury (-200; -0.3%) and Hartford (-100; -0.02%).