September Job Losses Highlight State’s Economic Challenges

Connecticut lost a staggering 5,700 jobs in September, with major declines across much of the state’s private sector.

There were few positive signs in the state Department of Labor’s September employment report, delayed six weeks because of the federal government shutdown.

Year-over-year gains fell to 4,500 new jobs (0.3%), 41st best in the country and a half-percentage point behind the national growth rate.

The labor force—those working and those looking for work—fell by 5,400 people (-0.3%) in September and is down 12,800 since January (-0.7%).

“This report raises serious concerns about Connecticut’s labor situation,” said CBIA president and CEO Chris DiPentima.

“It should set off alarm bells and serve as a stark reminder that we need to remain focused on Connecticut’s affordability and fiscal stability.”

Regional, National Trends

Labor department officials said the report “may signal that Connecticut’s economy is feeling federal policy changes,” adding that the state “is joining the national trend towards slower job growth.”

DiPentima acknowledged that while federal policies are having some impact on the state’s economy, “Connecticut’s challenges are more acute. “

“It’s important to step back and look at broader trends—Connecticut’s job growth is just 0.3% year-over-year compared to 0.8% nationally,” he said.

“Our labor force—those working and actively looking for work—is down by more than 8,000 from the same period last year.  

“And since the beginning of the pandemic, Connecticut’s labor force has grown just 0.7% compared to 4.2% nationally.”

Vermont is the region’s best performer in terms of job growth over the past 12 months, ranked 21st in the country with 1% growth.

New Hampshire’s year-over-year growth rate is 0.6%, followed by Rhode Island (0.5%), Connecticut, Massachusetts (-0.2%), and Maine (-0.8%).

‘Control Our Destiny’

DiPentima added that Connecticut’s relative fiscal health—a direct result of the 2017 bipartisan budget reforms—represented a platform for navigating economic uncertainty and driving growth.

“Connecticut’s fiscal position is stronger than it has been in years, but structural challenges remain barriers to economic growth,” he said.

“We need bold, courageous policies that not only make Connecticut more affordable, but build a sustainable workforce pipeline.”

CBIA’s Chris DiPentima

“The challenges we face are not new—energy, housing, healthcare, childcare, the cost of doing business. 

“Connecticut controls its own destiny to tackle these issues, particularly in terms of addressing rising fixed costs that limit investments in education, workforce, and technology.

“It’s clear that we need bold, courageous policies that not only make Connecticut more affordable, but build a sustainable workforce pipeline that connects residents with opportunities.” 

Industry Sectors, Labor Markets

Construction was the only major industry sector to post employment gains in September, adding 600 jobs (1%).

The government, leisure and hospitality, and other services sectors were all unchanged for the month.

Education and health services—the state’s largest employment sector—led all losing sectors, shedding 1,800 jobs (-0.5%) and cutting 12-month gains to 2,400 (0.7%).

Financial activities, which hit a post-pandemic employment high in August, lost 1,700 jobs in September (-1.4%), with 1,400 of the monthly losses in the finance and insurance subsector.

Trade, transportation, and utilities declined by 1,700 jobs (-0.6%)—the fifth consecutive month of losses—with year-over-year declines at 1,500 (-0.5%).

Professional and business services lost 600 jobs (-0.3%), followed by manufacturing (-300; -0.2%) and information (-200; -0.6%).

Employment declined in all five of the state’s major labor market areas in September, led by Waterbury-Shelton, which lost 1,700 jobs (-1.1%).

Bridgeport-Stamford-Danbury lost 1,200 jobs (-0.3%), followed by New Haven (-500; -0.2%), Hartford-West Hartford-East Hartford (-400; -0.1%), and Norwich-New London-Willimantic (-200; -0.2%).