The Connecticut unemployment rate dipped slightly to 8.9 percent in September, but the state jobs report contained little else to reassure business owners and consumers hoping for positive news following dismal August numbers.
The jobs picture was slightly better for Fairfield County residents, with unemployment at 7.5 percent in September compared to 7.7 percent a year ago.
Notably, the county”™s labor force ”“ which comprises all those who are employed or seeking work ”“ declined by nearly 1 percent over the past 12 months.
Since January, Connecticut employers have produced some 2,600 net new jobs, less than one-third of the amount of jobs created through the first nine months of 2011, according to data released by the state Department of Labor Oct. 18.
In addition, the Labor Department”™s preliminary estimate of employment declining by 6,800 in August ”“ which officials and economists had widely expected would be revised to show less severe losses ”“ was revised to show a decline of 7,500 jobs.
Gov. Dannel P. Malloy called the data “questionable at best,” while the Labor Department estimated that the annual process of revising the previous year”™s jobs data, known as benchmarking, would show that an additional 9,800 jobs have been created versus what the current data suggest.
“With the release of the numbers (Oct. 18), the only thing that”™s any clearer is how conflicting the data continues to be,” Malloy said in a statement. “We”™ve learned over the past few months that the economic crash of 2008 was worse than anyone realized, which is why it”™s taking us longer to climb out of the hole than any of us would like. But it”™s also important to remember that we”™re making some progress.”
Private sector employers created 2,900 jobs in September and have added 5,600 positions since September 2011.
The gains caused the state unemployment rate to drop one tenth of a percentage point to 8.9 percent from 9 percent in August. The unemployment rate continued to be elevated compared to a year ago, when it stood at 8.6 percent.
Statewide, average weekly earnings and average weekly hours were virtually unchanged in September compared to the prior month.
Average initial weekly unemployment insurance claims declined more than 5 percent to 4,527 from 4,779 in August.
The bulk of the private sector gains occurred in the education and health services sector, which created 2,400 jobs in September and 12,600 over the past year.
The construction and mining sector added 800 positions in September and the information sector added 600 positions.
Losses were concentrated in the government sector, which cut 900 positions, the trade, transportation and utilities sector, which cut 800 positions, and the professional and business services sector, which cut 600 positions.
Notably, the education and health services sector was the only one of the ten major industry clusters tracked by the Labor Department to record a net increase in jobs over the past year.
CBIA economist Pete Gioia called the September jobs report “the best news that we”™ve seen in several months,” citing strong private sector hiring compared to previous months, and job gains in six of the ten major industry sectors and five of the nine major geographic clusters tracked by the Labor Department.
However, Gioia said, “That”™s got to be tempered with the fact that the year-over-year gain in jobs has only been 1,900, which is incredibly weak.”
Since September 2011, nonfarm employment has increased by 1,900 positions, or 0.1 percent; however, the Labor Department estimated the state”™s total nonfarm employment would be revised upward by 9,800, or 0.6 percent, when the benchmarking process is completed in March.
At the beginning of each year, employment data from the previous 12 to 18 months gathered from separate surveys of households and businesses by the U.S. Census Bureau and supplied to each state are benchmarked against employment counts derived from state unemployment insurance tax records that nearly every employer is required to file.
The Labor Department”™s preliminary benchmark revision estimate projects an upward adjustment of 6,400 private sector jobs and 3,400 government jobs.
