Connecticut’s private sector has now fully recovered from the COVID-19 pandemic according to a preliminary report from the state’s Department of Labor (DOL). The September report on the state’s labor situation indicated the number of payroll jobs available in the state rose to 1,694,500 in September, above the 1,194,800 lowpoint in April 2020 caused by the COVID-19 lockdowns.
Connecticut’s employment rate remained at 3.5 percent in September, the same rate as August following a downward revision from 3.6 percent to 3.5 percent. According to a DOL press release, that revision is primarily due to the timing of school openings, which resulted in only 100 jbs being added during August instead of the 2,100 initially reported. “The swing in the numbers was caused by school employment data—job gains that were modeled in the August report actually occurred a few weeks later in September.” the DOL noted.
Patrick Flaherty, director of the DOL’s Office of Research, noted that unemployment in Connecticut’s private sector is at a 20-year low. Private sector employment increased by 700 jobs, or 0.1 percent, in September and is higher than a year ago.
Employment in government, manufacturing, educational and health services, leisure and hospitality, information, and the other services sectors increased last month. Of those sector, government increased the most, adding 2,500 jobs and increasing by 1.1 percent. Employment declined in the trade, transportation and utilities; construction and mining; professional and business services; and financial activities sectors. The trade, transportation and utilities sector saw the biggest decline in employment, losing 1,200 jobs, or 0.4 percent.
According to the DOL, declines in the transportation and warehousing sectors were driven by school bus driver vacancies and striking workers. Despite a 900 job decline in the construction sector, the industry is still more than 100 percent recovered from pandemic lows.
Employment in the government sector has recovered 80.1 percent from April 2020 lows. Employment in the sector in September was 2.2 percent higher than a year ago. The DOL’s release notes that employment in public schools at the start of the 2023-2024 school year was “particularly robust.”
Half of Connecticut’s six major labor market areas (LMA) saw gains in nonfarm unemployment in September while half saw declines. The New Haven LMA had the biggest growth, adding 500 jobs. Both the Waterbury LMA and the Norwich-New London-Westerly LMA added 200 jobs. The Bridgeport-Stamford-Norwalk LMA saw the largest decline in emplooyment, losing 1,200 positions. The Hartford-West Hartford-East Hartford LMA lost 300 jobs and the Danbury LMA lost 200.
The average workweek in September 2023 averaged 33.3 hours, down from 33.8 hours a year ago. Average hourly earnings also increased in September 2023 from a year ago, rising from $35.06 to $36.04. Those figures are not seasonally adjusted.
The Connecticut Business and Industry Association (CBIA), the state’s largest business organization, issued a response to the DOL’s preliminary report calling the additional jobs added in September a “positive sign.”
“The August revisions, from an initially reported gain of 2,100 to just a 100-job gain, really highlight the ongoing volatility in the job market.” CBIA president and CEO Chris DiPentima said.
DiPentima added that the group was encouraged by gains in the manufacturing sector, which has been impacted by labor shortages.
“While we’ve added over 21,000 jobs this year, our labor force—those working and those looking for work—has shrunk by 16,400 and is down 40,000 from pre-pandemic levels.” DiPentima said.
DiPentima also stated that while Connecticut has jobs available, it needs people to fill them and the labor shortage remains the state’s “biggest hurdle” to economic growth. “[O]ur hires rate is 35th best among all states, emphasizing the critical need to lower the cost of living and address the lack of affordable housing and childcare options.” he concluded.
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