Connecticut is back to adding jobs after unfortunate losses last month, even while the unemployment rate remains largely unchanged.
The latest jobs report out of the state’s Department of Labor (DOL) showed only a slight decrease in the overall unemployment rate, bringing it to 3.6%. This was the result of the addition of 2,900 jobs during the month of July.
The report also significantly adjusted the losses from June, bringing them from 4,600 losses to 2,500. That also means that July’s gains effectively erased the losses from the previous month.
Construction gained another 1,400 jobs, adding to June’s increase of 1,000. Healthcare positions led the way, however, with an increase of 2,200 jobs while Private Education added 800 as the new school year gets underway. Administrative & Support services was down 1,600 jobs, while Manufacturing lost 700.
“Job growth trends are important signals of industry sector health,” said CT Department of Labor (CTDOL) Office of Research Director Patrick Flaherty. “In Connecticut, seven sectors are now at or above pre-pandemic job levels. While the Health Care sector remains below pre-pandemic job levels due to nursing homes, the entire sector is back in job creation mode, a good sign for the economy. On the other hand, virtual meeting technology has driven what may be a permanent shift away from corporate travel, a change impacting the Accommodations and Food Services sector.”
According to CTDOL, total jobs are at 98.2% of pre-pandemic levels while the private sector is “just 100 jobs shy of full recovery at 99.9% recovered.”
Not everyone is as optimistic, however, as the Connecticut Business and Industry Association (CBIA) continued to show measured optimism. At issue is the continued decline in the state’s labor force which is now down 41,000 people, or 2.1% since before the pandemic.
“We have 91,000 job openings. Even if every unemployed person was hired tomorrow, we’d still have 22,000 unfilled positions.,” said CBIA president and CEO Chris DiPentima. “The demand is there, we have targeted workforce development programs in place, but we simply don’t have the people in Connecticut to fill those jobs.”
This is part of a larger trend in nearby states, though Connecticut’s losses are notably larger. Massachusetts saw a 0.9% decrease, while Rhode Island’s losses hover around 0.5%.
The CBIA believes that these losses are a result of Connecticut’s high cost of living, which wage increases have yet to keep up with.
“Policymakers must show a sense of urgency and address issues like the cost of living, housing, and the high cost of doing business here,” said DiPentima.
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