December Job Losses Should Sound Alarm Bells, Policymakers Must Reverse Trend

[soundcloud url=”https://api.soundcloud.com/tracks/303511316″ params=”color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false” width=”100%” height=”166″ iframe=”true” /] Connecticut’s economy lost 1,700 jobs in December, ending 2016 with a net loss of 2,000 jobs.
The state has only recovered 70% of the jobs lost during the 2008-2010 recession.
“We have a significant challenge going forward in terms of improving our economy particularly in creating jobs,” said CBIA Economist Pete Gioia.
“Creating jobs solves a myriad of problems. It improves the housing situation, provides more income, and creates more tax revenue.”
The state Department of Labor report also reduced November’s originally reported 2,100 job gain by 200 to a gain of 1,900.
The state’s unemployment rate fell three-tenths of a point to 4.4%.
The biggest gains were in education and health services (800), manufacturing (300), financial activities (200), and leisure and hospitality (100).
“Small bits of good news show that year over year manufacturing has added 1,000 jobs and financial services added 1,200,” said Gioia.
Losses were seen in professional and business services (-1,700); other services (-500); trade, transportation & utilities (-400); information (-300); construction and mining (-100); and government (-100).
Connecticut’s job recovery is vastly different when compared with neighboring Massachusetts. The Bay State added 6,600 jobs in December, gaining 75,000 new jobs in 2016.
Massachusetts recovered 313% of jobs lost during the economic downturn.
“How we can have a discrepancy of 77,000 jobs with our neighbor to the north on a year-over-year basis should really set off alarm bells and questions for policymakers,” said Gioia.
“These numbers only underscore the Governor’s message emphasizing the need for stability, predictability, and restoring business confidence.
“As we approach a very important budget address, it’s clear that the economy must remain the top priority for legislators.
“If we are going to find ourselves in a better fiscal situation, we have to find a way to create more jobs in Connecticut.”

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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 email or call Meaghan MacDonald (860.244.1957).