State lawmakers must sustain the momentum of significant job increases this month by passing a state budget that changes how Connecticut does business, says an economist with the state's largest business association.
Connecticut gained 7,000 jobs in June, following a gain of 5,600 jobs in May, according to the Connecticut Department of Labor.
"The June jobs report is solid—we're on track for stronger performance," CBIA economist Pete Gioia said.
Notably, Connecticut's private sector has recovered 102% of jobs lost during the recession. This is the first net expansion of private sector jobs in 88 months.
"It's important not to derail this momentum. Now the legislature must deliver a fiscally sound state budget that relies on long-term structural spending reforms and rejects broad-based tax increases," Gioia said.
"We believe the decision to hold the line on taxes last year helped create the conditions for this year’s growth, and now is no time to change course."
Connecticut employers have added over 15,400 jobs (0.9%) since June 2016, while the U.S. has an average growth rate of 1.6%. New England's year-over-year growth rate is 1.4%.
"It is encouraging to see growth in high-quality jobs in the financial services and manufacturing sectors, because these are the types of jobs we need to improve the revenue situation in the state and to lift other parts of the economy," Gioia said.
The unemployment rate has ticked up to 5%, reflecting more people entering the job market, while the U.S. rate is at 4.4%.
"The key thing is to sustain the momentum that we have, then we can make serious gains on the pace seen in other states and the U.S. overall," adds Gioia.
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).