Pace of Job Growth ‘Reflects Long-Term Challenges’

Connecticut added just 700 jobs in July as employers continued to face challenges filling the state’s 77,000 open positions.

“The numbers are still pretty anemic,” said CBIA president and CEO Chris DiPentima, responding to the Aug. 18 release of the Department of Labor’s monthly employment report.

“The pace of job growth continues to fall short of demand—last month’s modest increase reflects Connecticut’s long-term job growth challenges.

“If you’re not seeing growth when businesses have 77,000 jobs open, it’s a real issue.”

DiPentima added that it was “imperative that policymakers recognize the challenges employers face and support policy solutions that make Connecticut more affordable for residents and businesses.”

“The jobs market is the driving force behind Connecticut’s economy, with more productive employment leading to higher GDP and more tax revenue for the state.”

Regional, National Picture

Connecticut’s 12-month job growth is 0.6%, tied for 34th best among all states and third best in the New England region, ahead of Rhode Island (0.4%), Massachusetts (0.2%), and Maine (-0.2%).

New Hampshire leads the region in year-over-year job growth at 0.8%, with Vermont at 0.7%. National job growth was 1.1% in July.

Connecticut’s labor force—those working plus those actively looking for work—declined by 2,500 people last month, with year-over-year growth just 0.4%.

Labor force levels are only 1.2% above pre-pandemic levels—national growth is at 3.6%—while job openings have grown 8.6% since February 2020.

The state’s unemployment rate was unchanged in June at 3.8%, 26th lowest among all states. The U.S. unemployment rate was 4.2%.

The labor participation rate declined slightly in June to 64.7%, 14th best in the country.

Industry Sectors, Labor Markets

Half of Connecticut’s 10 major industry sectors posted employment gains in July, led by professional and business services, which added 2,000 jobs (0.9%).

The financial activities sector gained 600 positions (0.5%), followed by information (500; 1.6%), government (500; 0.2%), and other services (200; 0.3%).

Manufacturing employment was unchanged in July, with the sector down 2,700 jobs over the last 12 months (-1.7%), despite an estimated 7,000 job openings.

The sector has regained just 35% of the 11,800 jobs lost to pandemic disruptions in March and April of 2020. Only financial activities, another critical economic sector, has fared worse, recovering 19% of its losses.  

Trade, transportation, and utilities continued its run of losses, shedding 1,600 jobs in July (-0.5%)—the third consecutive month of losses and down 900 jobs (-0.3%) year-over-year.

Leisure and hospitality lost 1,100 jobs (-0.7%), construction employment fell by 200 (-0.3%), and education and health services also declined by 200 (-0.1%).

All five of the state’s major labor market areas posted gains in July, led by Bridgeport-Stamford-Danbury, which added 1,000 jobs (0.2%).

Hartford-West Hartford-East Hartford gained 600 jobs (0.1%), followed by New Haven (300; 0.1%), New Haven (900; 0.3%), Norwich-New London-Willimantic (100; 0.1%), and Waterbury-Shelton (100; 0.1%).