The Connecticut Business & Industry Association (CBIA) has warned that the state”™s growing job loss has become a reflection of the budget stalemate that has dragged on for more than three months.
According to the latest Connecticut Department of Labor statistics, the state lost 2,000 jobs in September, while August”™s initial report of a 3,900-job loss has been revised to 4,200.
“Connecticut”™s economy is impacted by the instability at the Capitol,” said Pete Gioia, CBIA”™s economist. “Today”™s disturbing employment report is a dramatic reminder of that.”
Gioia said that although the local unemployment rate fell two-tenths of a point to 4.6 percent, it was a result of a shrinking labor force and not a booming employment picture, noting that the third quarter saw the disappearance of 7,900 jobs.
“We started this year with great momentum, even seeing as much as 11,000-plus job growth year over year,” Gioia said. “But over the last three months, it”™s eroded dramatically.”
Gioia noted that there was some bright employment news: professional and business services added 1,100 jobs, while 900 jobs were added in the financial sector, 300 in the information industries and 200 in manufacturing.
“But those sectors are not strong enough to carry it alone,” he said. “Legislators must produce a state budget that business can believe in so we can begin to reverse this trend.”
