Disappointing but Expected Jobs Report, Economy Must Be Top Priority
“Overall, this is not unexpected and it does point to the fact that we are still struggling here in Connecticut,” said CBIA economist Pete Gioia.
“But this report does highlight that the economy and creating investment that create jobs should be job number one for policymakers.”
Gioia said that this weak report was expected after the announcement that the United States only added 38,000 jobs overall in May. Connecticut lost 1,400 jobs last month.
Unemployment in Connecticut remained at 5.7% according to the state Department of Labor’s May jobs report.
Gioia notes the rate is higher than we were a year ago (5.6%) and the highest among all other New England states.
“On a slightly more positive note, Connecticut has added 13,900 more jobs since last May and we have seen some sectors of higher quality jobs growing,” said Gioia.
The high quality sectors include manufacturing (1,200), construction and mining (900), and financial activities (700).
Trade, transportation, and utilities (-2,600) saw the largest loss of jobs.
Connecticut’s recovery rate has now dropped to 79%. The state must add an additional 25,200 jobs to reach pre-recession levels.
According to DataCore Partners, neighboring state Massachusetts has recovered 255% of the jobs lost during the economic downturn and the United States as a whole as recovered 163%.
“Are we heading back into a recession? No but we are hitting some bumps in the road,” said Gioia.
“Put it this way, we just blew out a tire on a big pothole and now have to change it before we can move forward again.”
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, contact Meaghan MacDonald (860.244.1957).
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