New Economic Reality Continues to Impact Job Growth
Flat job growth and rising unemployment underscore ongoing economic concerns here in the state, an economist with the state’s largest business organization said today.
“We are still struggling to come to terms with a stubborn new economic reality,” said CBIA economist Pete Gioia.
“We are adding back low-wage jobs at a much higher rate than high-paying jobs.”
Unemployment in Connecticut rose for a second month according to the state Department of Labor’s March jobs report and at 5.7% remains the highest in New England.
Job growth for the month was flat, with just 300 new positions. Government was among the sectors with gains, while construction and mining, other services, financial activities, and manufacturing all posted losses.
Year over year, the state has added 15,000 new jobs. Of those, only 800 were in manufacturing, and 100 in finance and insurance, typically higher paying jobs.
The majority of new jobs added over the last year were in the leisure and hospitality sector (4,600) and trade, transportation, and utilities (3,900).
“This only exacerbates the problems that Connecticut is facing, including fiscal instability with the state budget,” said Gioia.
“Nothing would be a stronger confidence builder, or be a better catalyst for strong economic growth than for the legislature to close the state budget gap without adding to the cost and burdens of creating and maintaining jobs.”
Connecticut has now recovered 77% of jobs lost during the recession.
The U.S. has recovered 161% of jobs lost during that same time, according to DataCore Partners.
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).
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.