Unusual’ Education Gains Drive September Job Growth

10.17.2019
Economy

Connecticut stretched employment gains to a third consecutive month in September, adding 3,600 jobs.

The state Department of Labor’s employment report noted net gains were largely driven by the 4,300 new jobs in the education and health services sector.

2019 job growth in New England

“September was another good month for payroll job growth in Connecticut, pushing us above any level seen last year,” said DOL research director Andy Condon.

“However, almost all the growth came from an unusually high increase in the education component of the education and healthcare sector.

“We will have to wait and see if this level holds up in future months.”

The education subsector includes private elementary and secondary schools, colleges and universities, professional and business schools, technical and trade schools, and educational support services.

‘Needs Watching’

August’s initially reported gain of 2,800 jobs was also revised down to a 1,600 increase in the September report.

CBIA economic adviser Pete Gioia said Connecticut has now added 2,400 new jobs this year. At 0.1%, that remains the slowest growth of the New England states. 

Rhode Island leads the region with 1.2% growth, followed by Massachusetts (0.9%), New Hampshire (0.9%), Maine (0.7%), and Vermont (0.4%).

United States employment has grown an average 1% in 2019.

“We will have to wait and see if this level holds up in future months.”

DOL research director Andy Condon

“Overall, it’s a month that on the face of it is positive but still needs to be watched,” Gioia said.

“Hopefully we will continue to see gains in employment throughout the rest of the year.”

The state’s unemployment rate was unchanged at 3.6%, tied with Rhode Island for the region’s highest.

Vermont has the lowest unemployment in New England at 2.1%. The national unemployment rate is 3.5%.

Sectors, Labor Markets

September was a mixed month for two of the state’s major employment sectors, with manufacturing gaining 600 jobs while financial activities declined by 100.

Education and health services led the four gaining sectors, followed by manufacturing, information (300), and leisure and hospitality (100).

Other services led the five declining sectors, shedding 600 jobs, followed by professional and business services (-400), construction and mining (-400), government (-200), and financial activities.

Employment in the trade, transportation, and utilities sector was unchanged for the month.

Four of the state’s six major labor market areas posted gains in September, led by Hartford with 1,400 new jobs.

Bridgeport-Stamford-Norwalk and New Haven each gained 1,000 jobs while Waterbury added 700.

Danbury was unchanged for the month while Norwich-New London-Westerly lost 500 jobs.

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