June Losses Highlight Job Market Volatility
Connecticut lost 4,600 jobs in June, erasing most of May’s gains with declines across most industry sectors.
June represented the largest single monthly loss since April 2020, based on the the Connecticut Department of Labor’s latest employment report.
Private sector employment declined by 5,300 jobs, led by puzzling losses in the leisure and hospitality and other services sectors.
CBIA president and CEO Chris DiPentima called the June employment report “very disappointing.”
“There was some positive news, with construction and manufacturing posting gains, but that was offset by declines across most other sectors,” he said.
“The leisure and hospitality sector’s significant losses spotlight that volatility—that sector historically gains jobs in June, not lose 1,700 positions.”
Connecticut has added 20,300 jobs over the last 12 months, a 1.2% growth rate that is 45th in the country. The U.S. growth rate for the same period is 2.5%.
Massachusetts’ year-over-year job growth rate is 2.6%, the best of the New England states and tied for 17th fastest in the country.
New Hampshire’s 12-month growth rate is 2.2%, followed by Connecticut, Maine (1%), Vermont (-0.2%), and Rhode Island (-0.4%).
“The June numbers point to the ongoing volatility in Connecticut’s job market while highlighting the challenges we face with resolving the labor shortage crisis,” DiPentima said.
Connecticut has recovered 96% of the historic 289,100 jobs lost in March and April of 2020 to pandemic shutdowns and restrictions.
New Hampshire has the region’s best recovery at 108%, followed by Maine (104%), Massachusetts (103%), Connecticut, Rhode Island (89%), and Vermont (82%). The U.S. average is 117%.
Connecticut’s labor force losses continued for a sixth consecutive month, bringing the 12-month decline to 39,600.
The labor force—those employed plus those actively looking for work—is at its lowest level since September 2021 while job openings are 34% above pre-pandemic levels.
“Job growth is essential for building a robust, vibrant economy and we must address the factors driving the labor shortage and employment in the state,” DiPentima said.
Connecticut’s unemployment rate was unchanged in May at 3.7%, the highest of the New England states and 12th highest in the country.
New Hampshire’s 1.8% unemployment rate is the region’s lowest, followed by Vermont (1.9%), Maine (2.4%), Massachusetts (2.6%), Rhode Island (2.9%), and Connecticut.
The U.S. unemployment rate is 3.6%.
Industry Sectors, Labor Markets
Just three of Connecticut’s 10 major industry sectors added jobs in June, led by construction, where employment increased by 1,000 (1.7%).
The government sector, which includes employment at the state’s two casinos, added 700 jobs (0.3%), while manufacturing gained 400 positions (0.3%).
The other services and leisure and hospitality sectors posted the biggest losses, with each sector shedding 1,700 jobs in June. That represented a 2.7% decline for other services and a 1.1% loss for leisure and hospitality.
The information sector lost 1,000 jobs (-3.1%) last month, followed by financial activities (-900; -0.8%), education and health services (-700; -0.2%), trade, transportation, and utilities (-600; -0.2%), and professional and business services (-100; -0.04%).
Two of the state’s six major labor market areas posted gains in June, with both Danbury and Norwich-New London-Westerly adding a modest 100 jobs.
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