Connecticut lost 2,000 jobs in September, marking three consecutive months of losses that have erased most of the strong gains from earlier in the year.
The state's job losses now total 7,900 over the last three months, which CBIA economist Pete Gioia noted mirrors the same period Connecticut has gone without a new budget.
"Connecticut's economy is impacted by the instability at the state Capitol," Gioia said.
"September's disturbing employment report is a dramatic reminder of that."
Gioia said the state was rapidly losing momentum after reaching a post-recession high of 1.69 million jobs in June.
"We started this year with great momentum, even seeing as much as 11,000-plus job growth year-over-year," he said. "But over the last three months, it's eroded dramatically.
"Legislators must produce a state budget that business can believe in so we can begin to reverse this trend."
Private sector employers shed 1,100 positions in September after losing 4,100 jobs the previous month.
Connecticut has added just 3,500 jobs over the last 12 months, or 0.2%—the slowest growth of any of the New England states during that period.
"That's not where we want it," state Department of Labor research director Andy Condon said after the agency released the monthly employment report.
Our economy is impacted by instability at the Capitol. September's jobs report is a dramatic reminder of that.
While Connecticut's unemployment rate fell two-tenths of a point to 4.6% in September, Gioia said that was the result of the state's shrinking labor force.
Connecticut's labor force has declined by 19,300 people since June, or 10%.
The state has now recovered just 76% of the 119,100 jobs lost during the 2008-2010 recession.
Industry Sectors, Labor Markets
Four of the state's industry sectors posted gains in September, led by professional and business services, which added 1,100 new jobs.
The financial activities sector grew by 900 jobs, followed by information (300) and manufacturing (200).
Construction and mining dropped 1,400 jobs last month, the worst of the six sectors that posted losses.
Leisure and hospitality lost 1,200 jobs, followed by government (-900), education and health services (-600), trade, transportation, and utilities (-300), and other services (-100).
New Haven was the state's only labor market area with job gains in September, adding 1,200 positions and now leads all areas in job growth over the last 12 months.
Hartford-West Hartford-East Hartford lost 2,100 jobs, followed by Bridgeport-Stamford-Norwalk (-200) and Danbury (-100).
Norwich-New London and Waterbury were unchanged for the month.