CBIA Response to January 2026 Employment Report

The state’s largest business organization issued the following response to today’s release of the January 2026 employment report.
“It’s encouraging to see Connecticut start the year so strongly, with gains in nearly all key industry sectors,” said CBIA president and CEO Chris DiPentima.
“However, as Labor Commissioner Dante Bartolomeo notes, we can expect fluctuations in this data ‘as employers in Connecticut and across the U.S. face uncertainty with hiring, tariffs, and energy costs.’
“It’s also important to note that Connecticut’s unemployment rate (4.5%) is above the national average (4.3%) for the first time since January 2023.
“More concerning for our economic outlook is that the jump in the unemployment rate coincides with the continued decline of the state’s labor force.
“The labor force—those working and actively looking for work—fell by 2,500 in January and is down 11,800 (0.6%) year-over-year.
“That compares with a 0.7% increase in the national labor force over the last 12 months.
“While this is just a snapshot at the start of the year—and we’ll be looking closely at the data in the coming weeks—this report is a stark reminder of our workforce challenges.
“Manufacturing—a critical industry for Connecticut’s economy—is down 1.4% from last January, compared with a 0.7% decline nationwide.
“Employers continue to do their part—average weekly wages are up 4% to start the year, outpacing New England’s 2.8% inflation rate.
“If we want to grow Connecticut’s economy for both the short and long term, we need to get the people who are on the sidelines back into the workforce.
“It’s critical that policymakers focus on the issues straining employers and making it harder to attract and retain workers, including energy, healthcare, housing, and childcare costs.”
CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Scott Beaulieu (860.244.1929).
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