February Jobs Report Highlights Troubling Trends

February’s employment report highlighted several troubling trends for Connecticut’s labor market as employers navigate growing economic headwinds.

Employment declined by 4,200 (-0.2%) last month, erasing all of January’s gains after the state Department of Labor revised down that month’s initially reported 5,300 new jobs.

Connecticut has now added just 1,000 jobs over the past 12 months—an anemic 0.1% growth rate—while payrolls have fallen below March 2008 levels.

That’s despite more than 76,000 job openings in the state, with the number of unfilled positions continuing to remain persistently high.

Another 2,100 people left the labor force in February, with the population of those working or looking for work declining by more than 14,000 (-0.7%) over the past 12 months.

The state’s unemployment rate jumped two-tenths of a point to 4.7%, it’s highest level—outside the pandemic—since 2016.

Affordability Crisis

“It’s clear that Connecticut continues to lag the U.S. across a range of key economic indicators,” said CBIA president and CEO Chris DiPentima.

“Connecticut’s total employment numbers have fallen below 2008 levels, while nationally, job growth is at 15% since the beginning of the Great Recession.

“And while our GDP was the 12^th fastest among all states in 2025, that’s not enough to overlook long-term trends and structural deficiencies in the state’s labor market.

DiPentima emphasized that Connecticut’s growing affordability crisis—driven by rising energy, healthcare, and housing costs—was driving labor force declines.

Timely piece given the legislature's indifferent treatment of #smallbiz. "Politicians who view the business community as a target to be exploited, rather than an asset that requires cultivation, do so at their own peril and that of their constituents." https://t.co/dh8KKWb9Hr

— Chris DiPentima (@ChrisDipentima) April 21, 2026

“Despite the critical need to address these long-term challenges, state lawmakers are instead considering onerous new mandates on businesses—creating costly burdens and making it harder to attract and retain workers,” he said.

“At the same time, legislators this session failed to advance a transformative, bipartisan healthcare bill for small businesses struggling to maintain employee benefits. 

“Employers—particularly small businesses—are looking to their legislators for solutions to make Connecticut a more affordable place to live, work, and do business. 

“But time and again this session, they’ve been met with largely indifferent treatment. 

“Connecticut’s employers deserve better. Connecticut’s workforce deserves better. Connecticut’s economy deserves better.” 

Labor Force Declines

Connecticut’s labor force is now 0.7% below pre-pandemic levels—in stark contrast with the national average, up 3.9% over the same period.

At 2.9%, Massachusetts has seen the region’s strongest post-pandemic labor force growth, followed by Rhode Island (2.6%), Maine (1.7%), New Hampshire (0.4%), Connecticut, and Vermont (-2.1%).

Connecticut’s unemployment rate—which was below 4% for more than three years—is now the 37th highest of all states. The U.S. rate is 4.4%.

At 2.6%, Vermont has the lowest unemployment in the region—and the third lowest in the country—followed by New Hampshire (3.2%), Maine (3.2%), Rhode Island (4.6%), Connecticut, and Massachusetts (4.8%).

“There’s no denying volatility from federal and global factors, but it’s clear that Connecticut continues to lag the U.S. across a range of key economic indicators,” DiPentima said.

“If we want to grow Connecticut’s economy for both the short and long term, we need to get the people who are on the sidelines back into the workforce.”

Industry Sectors, Labor Markets

Employment grew in only three of the state’s 10 major industry sectors in February, led by information, which added 500 jobs (1.6%).

Manufacturing added 400 positions (0.3%), while overall sector employment is 0.8% lower than the same time last year and 5.2% below pre-pandemic levels.

Education and health services, the state’s largest employment sector, added 400 jobs (0.1%) last month.

Professional and business services posted the largest decline, shedding 1,600 jobs (-0.7%), with 12-month losses at 0.5%.

Other services lost 1,200 jobs (-1.8%), followed by construction (-900; -1.4%), trade, transportation, and utilities (-900; -0.3%), leisure and hospitality (-500; -0.3%), financial activities (-200; -0.2%), and government (-200; -0.1%).

Norwich-New London-Willimantic was the only one of the state’s five major labor markets areas to see gains in February, adding 300 jobs (0.2%).

Hartford-West Hartford-East Hartford saw the largest decline, losing 1,400 jobs (-0.2%).

Bridgeport-Stamford-Danbury lost 1,200 positions (-0.3%), followed by New Haven (-500; -0.2%), and Waterbury-Shelton (-200; -0.1%).