Connecticut’s unemployment rate rocketed back up a half percentage point to 9 percent in August, according to new estimates by the U.S. Department of Labor, a one-month spike in line with the overall U.S. trend that has economists flummoxed.
“Both monthly labor statistics programs point toward employment losses in Connecticut,” said Andy Condon, research director at the Connecticut Department of Labor, in a prepared statement. “However, to date we can find no corroborating evidence that the record losses in employment and increases in unemployment, indicated by the household survey, are occurring at this magnitude. Other indicators, such as unemployment insurance claims, layoff events and reports of business expansions and contractions, do not support the sudden and steep decline in these indicators.”
The data suggests the state shed 6,600 jobs in August, though the Fairfield County area appeared to have added 800 jobs. Statewide, the construction sector was the hardest hit, followed by leisure and hospitality employers.
Connecticut’s unemployment rate last reached 9 percent in April 2011.
The Connecticut Department of Labor also revised the state’s July job gains downward, from previous estimates of 5,100 jobs to a revised total of 3,500. With a population of 3.4 million, Connecticut’s job totals were up by just an estimated 1,100 jobs from August 2011.
“I’m skeptical about these numbers,” stated Gov. Dannel P. Malloy. “We haven’t seen an increase in the initial number of people filing for unemployment benefits ”¦ In fact, claims are down from this time last year (and) tax withholdings are up 3.6 percent after adjustment. Those two trends are the opposite of what you would expect to see if the state was losing jobs at the rate suggested in this report. However, I am well aware that we continue to battle strong headwinds.”
