State’s Jobs Recovery Loses Momentum
Connecticut’s economic recovery lost momentum in August, with the state losing 3,600 jobs after six consecutive months of gains.
In releasing its monthly employment report, the state Department of Labor also revised down the July numbers, saying 1,000 jobs were added for that month against a previously reported gain of 2,400 positions.
The unemployment rate remained unchanged at 6.6%, tied for 14th highest in the country. The national unemployment rate is 6.1%.
“The monthly jobs report continued the recent trend of mixed news,” said Joe Brennan, executive vice president for the Connecticut Business & Industry Association.
“We’re on track to gain 15,000 jobs this [calendar] year, which is an improvement, but it shows that the Connecticut economy still has a long way to go.”
With the release of the August report, the state has regained 59.9% of the 119,100 jobs lost during the March 2008-February 2010 recession. The national economy regained all lost jobs earlier this year.
However, the 25,200 new jobs gained in the 12 months immediately following the end of the economic downturn in February 2010 represent the strongest period of job growth in the post-recession years [see figure above].
Over the last 12 months, Connecticut added 5,600 jobs, a growth rate of 0.3%.
The private sector posted a modest gain of 400 jobs in August, with manufacturing leading all major industry sectors with 1,400 new jobs. Manufacturers now have added a net 600 jobs since August 2013.
Sector gains, losses
Construction and mining marked a third month of gains, with 1,000 new jobs. Trade, transportation, and utilities gained 800 positions, followed by other services (800) and financial actitivites (100).
The government sector, which includes casino employment, recorded the greatest declines in August, losing 4,000 jobs.
Professional and business services shed 1,500 positions, followed by education and health services (-1,100), leisure and hospitality (-1,000), and information (-100).
Two of the state’s six labor market areas posted gains in August, with Hartford adding 1,000 jobs and Norwich-New London adding 100.
New Haven shed 1,500 jobs, the largest decline of the four losing sectors. Bridgeport-Stamford-Norwalk lost 1,300 jobs, followed by Danbury (-400) and Waterbury (-100).
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