Job Losses Raise Budget Vote Stakes
The August jobs report reinforces the critical need for lawmakers to adopt a budget that will change the state’s direction, an economist with Connecticut’s largest business association said today.
“This is a major retreat from the positive momentum we saw earlier this year,” CBIA’s Pete Gioia said.
“It’s vital that policymakers focus on job creation when developing the next state budget.”
Connecticut lost 3,900 jobs last month and the Department of Labor revised July’s initial loss of 600 to a loss of 1,100, for a loss of 5,000 jobs over the last two months.
“To put that in perspective, Massachusetts gained 10,800 jobs in August,” Gioia said.
There were bright spots in the report and that includes manufacturing (1,200 jobs gained this month) and professional and business services (800).
However, Connecticut has added just 6,000 jobs over the last 12 months (0.4%) and its 78% post-recession recovery rate is the slowest in New England.
The unemployment rate dropped from 5.0% to 4.8%, but remains the highest in the region.
“While our unemployment rate is down, it’s down for the wrong reasons,” said Gioia, noting that the state’s labor force fell by 5,600.
“We need a state budget that sets the tone for positive job growth,” Gioia said.
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).
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