Private Sector Jobs Hit Post-Recession Milestone
Connecticut’s economy reached an important milestone in June, with the private sector recovering all jobs lost during the recession.
Employers added 7,000 jobs in June, pushing the private sector into expansion mode seven-plus years after the recession ended in February 2010.
Private sector employers have recovered 102% of the 111,700 jobs lost during the economic downturn.
Overall, Connecticut has regained 84% of the total 119,100 lost jobs.
“The June jobs report is solid—we’re on track for stronger performance,” CBIA economist Pete Gioia said.
June marks the second consecutive month of growth, although Connecticut’s Department of Labor revised down May’s originally reported gain by 1,100 to 5,600 jobs.
Connecticut has added 15,400 jobs over the last 12 months, building critical momentum that Gioia said lawmakers must acknowledge as they work to resolve the state’s budget crisis.
“It’s important not to derail this momentum,” he said.
“Now the legislature must deliver a fiscally sound state budget that relies on long-term structural spending reforms and rejects broad-based tax increases.
“We believe the decision to hold the line on taxes last year helped create the conditions for this year’s growth, and now is no time to change course.”
Holding the line on taxes last year helped create the conditions for growth. Now is no time to change course.
The state's unemployment rate rose one-tenth of a point to 5% in June, the highest of the New England states. U.S. unemployment is at 4.4%.
Gioia said the unemployment rate likely reflects more people entering the labor market.
The key thing is to sustain the momentum that we have, then we can make serious gains on the pace seen in other states and the U.S. overall," he said.
Sectors, Labor Markets
Seven of the state's 10 industry sectors posted gains in June, led by leisure and hospitality with 4,400 new jobs, primarily in hotels and restaurants.
Education and health services added 1,200 jobs, followed by financial activities (800), information (600), other services (600), manufacturing (200), and professional and business services.
"It is encouraging to see growth in high-quality jobs in the financial services and manufacturing sectors," Gioia said.
"These are the types of jobs we need to improve the revenue situation in the state and to lift other parts of the economy."
Construction and mining lost 800 jobs in June while the government sector shed 100 positions.
New Haven led all labor market areas last month with 1,600 jobs, and is now the fastest growing area in the state over the last 12 months in percentage terms (4,000 jobs, 1.4%).
Hartford-West Hartford-East Hartford gained 1,200 jobs and has added 5,800 jobs (1%) since June 2016.
Norwich-New London-Westerly (600), Danbury (400), and Bridgeport-Stamford-Norwalk (300) all added jobs in June.
Waterbury lost 600 jobs during the month and is the only labor market area to lose jobs over the last 12 months (-1,100).
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