The pace of job creation in Connecticut came to a grinding halt in December as nonfarm employment fell by 1,800, resulting in a net decrease in jobs in 2012, according to data released by the state Department of Labor (DOL).
The state’s civilian labor force, which includes those with jobs and those actively seeking work, decreased by 9,900 from November to December and by 45,500, or 2.4 percent, in 2012.
The annual drop represented the largest annual labor force decline since the state DOL began using electronic records in 1976, and caused the state’s unemployment rate to decline to 8.6 percent from 8.9 percent in November.
“The state’s trend of a declining labor force continues for the sixth month in a row and was the primary factor behind the declining unemployment rate in December,” said Andy Condon, director of research for the state DOL, in a Jan. 17 statement.
In December, Connecticut private sector employers shed 1,800 jobs, while government sector employment was unchanged from the previous month.
Job gains came in the education and health services sector, the manufacturing sector and the construction and mining sector. Sectors that saw employment decline in December included trade, transportation and utilities, professional and business services, leisure and hospitality, and financial services, among other areas.
For 2012, the state’s private sector employment grew by 2,800 positions, or 0.2 percent, while government sector employment fell by 2,900 positions.