The Connecticut Department of Labor’s (DOL) most recent jobs report shows a steady unemployment rate compared to the previous month, even while overall job creation declined. This comes just a day after the DOL announced findings that a nearly three-quarters of unemployment claims in the state are the result of fraud.

Thursday’s jobs report for the month of June showed a 3.7% unemployment rate, the same rate as noted in May’s report. This marks a 98% recovery rate following the COVID-19 pandemic.

Unlike May, however, job creation reversed. Where May saw an addition of 5,000 jobs, mostly in the Leisure and Hospitality sector, June saw a loss of 4,600 jobs, also mostly in the Leisure and Hospitality industry, as well as in “Other Services.” This marks a 0.3% decrease over the last month.

Where in May, the Construction and Mining sector lost 200 jobs, this month it added 1,000. Government (+700) and Manufacturing (+400) also contributed to small gains in the Connecticut job market. Information (-1,000) and Financial Activities (-900) contributed to the next largest decreases.

Despite these declines, the DOL’s statement was positive about the overall gains this year.

“Even after the June decline, Connecticut has gained 14,100 so far in 2023, more jobs than added in the first six months of any pre-pandemic year since 2006,” said Patrick Flaherty, Director of the Office of Research at the Connecticut Department of Labor, in the report. Flaherty also pointed to seasonal adjustments, which he says exaggerated both May’s gains and June’s losses.

The Connecticut Business and Industry Association, meanwhile, did not see many positives to the most recent report. 

“The June numbers point to the ongoing volatility in Connecticut’s job market while highlighting the challenges we face with resolving the labor shortage crisis,” CBIA CEO Chris DiPentima said in a statement. “Connecticut’s year-over-year job growth is now just 1.2%, well below the national average of 2.5%, and among the slowest of all states.”

DiPentima also pointed to continued declines in the state’s overall workforce, something the organization highlighted last month. The number of people working in the state has declined since last year and while the CBIA does not know exactly why that is, they say it poses a concern for business leaders in the state who may not be able to fill open positions.

All of this comes just one day after the Department of Labor issued an alert to Connecticut residents saying that they have found nearly 75% of unemployment claims to be the result of fraud. These fraudulent claims, they say, are the result of identity theft, and consumers in the state should be on alert for any changes to their credit reports. If you do notice fraud, you are urged to report it. You should also report to the department if you receive a tax form from them but did not file for unemployment benefits.

“CTDOL takes immediate action to notify employers when someone has filed against them, as a result, employers are often the first to know that an identity was stolen,” said DOL Commissioner Danté Bartolomeo. “In many cases, that employee still works for them. Victims of ID theft also receive a notice of monetary determination, a notification that alerts them that someone has filed a claim using their identity.”

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An Emmy and AP award-winning journalist, Tricia has spent more than a decade working in digital and broadcast media. She has covered everything from government corruption to science and space to entertainment...

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