Rising Unemployment, Shrinking Labor Force Cloud Job Gains

Connecticut added 5,700 jobs in April, the strongest monthly gain since pandemic restrictions and closures eased in the middle of 2020.

However, another jump in the unemployment rate and further sharp declines in the labor force clouded strong performances across multiple industry sectors.

The state Department of Labor’s monthly employment report shows the unemployment rate rose two-tenths of a point to 5% last month, seventh highest in the country.

Another 9,000 people left Connecticut’s labor force in April, with the population of those working and looking for work down 28,100 (-1.4%) over the last 12 months.

“April’s gains—while encouraging—highlight the ongoing volatility in Connecticut’s job market,” said CBIA president and CEO Chris DiPentima.

“This report again reinforces the top challenge to Connecticut’s economic growth—the state’s shrinking labor force.”

Labor Force Declines

The number of Connecticut job openings remains persistently high—85,749 as of March, with the education, retail trade, manufacturing, professional services, and finance sectors accounting for over half of all unfilled positions.

However, the state’s labor force is now 21,000 below pre-pandemic levels (-1.1%)—in sharp contrast with the national average, up 3.4% over the same period.

“For Connecticut to truly see sustained, meaningful growth, it’s critical that state policymakers focus on making our state a more affordable and attractive place to live, work, and do business,” DiPentima said.

“However, during the just-completed legislative session, those policymakers failed to act on opportunities to address healthcare, housing, and energy costs.

“Until that happens, Connecticut’s affordability crisis will keep holding our economy back.”

At 2.1%, Massachusetts has seen the region’s strongest post-pandemic labor force growth, followed by Rhode Island (1.7%), Maine (1.3%), New Hampshire (0.4%), Connecticut, and Vermont (-2.9%).

Vermont has the lowest unemployment rate (2.6%) in the region—and the fourth lowest in the country—followed by New Hampshire (3.1%), Maine (3.1%), Rhode Island (4.5%), Massachusetts (4.7%), and Connecticut.

The U.S. unemployment rate was 4.3% in April.

Industry Sectors, Labor Markets

Seven of the state’s 10 major industry sectors posted job gains in April, led by professional and business services, which added 2,600 positions (1.2%) to bring 12-month growth to 1,100 (0.5%).

Manufacturing saw the sector’s best monthly performance since last June, adding 1,200 jobs (0.8%) to bring year-over-year growth to 0.9%.

Education and health services added 1,100 jobs (0.3%) last month, followed by trade, transportation, and utilities (1,000; 0.3%), leisure and hospitality (600; 0.4%), other services (500; 0.8%), and construction (200; 0.3%).

The information sector posted the largest percentage decline for the month, shedding 500 jobs (-1.6%), with 12-month grow unchanged employment unchanged.

Financial activities lost 500 jobs (-0.4%), as did the government sector (-0.2%).

All five of the state’s major labor market areas posted gains in April, led by Hartford-West Hartford-East
Hartford, which added 2,400 jobs (0.4%), narrowing 12-month losses to 100 (-0.02%).

Norwich-New London-Willimantic added 1,100 jobs (-0.2%) to bring 12-month gains to 800 (0.6%).

Employment in New Haven grew by 1,000 last month (0.4%), with year-over-year losses at 300 (-0.1%).

Bridgeport-Stamford-Danbury added 900 jobs (0.2%), with employment growing by 700 (0.2%) since April 2025.

Waterbury-Shelton gained 600 jobs (0.4%) and is down 1,400 positions over the last 12 months (-0.9%).