Connecticut lost 4,600 jobs during June
Connecticut saw the loss of 4,600 jobs in June, the largest monthly statewide job loss since April 2020, according to new data from the state”™s Department of Labor. This 0.3% decline brings the number of Connecticut-based jobs down to 1.68 million while the state’s unemployment rate remained unchanged at 3.7%.
The state also readjusted May”™s preliminary payroll gain of 5,000 positions by 300, resulting in a 5,300 (0.3%) job gain. June was the largest monthly statewide job loss since April 2020.
“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. “Seasonal adjustment exaggerated May strength and is now exaggerating June weakness. Industries with the largest (seasonally adjusted) June losses had large May gains suggesting summer hiring took place earlier in 2023 than in previous years. The unemployment rate remains low and steady.”
The state”™s private sector employment declined by 5,300 (-0.4%) jobs in June to 1.45 million while the government supersector was up by 700 (0.3%) to a level of 231,500 jobs. Within Fairfield County, the Greater Danbury area added 100 positions while the Bridgeport-Stamford-Norwalk corridor saw the loss of 1,700 jobs.
Chris DiPentima, president and CEO of the Connecticut Business & Industry Association (CBIA), said the June data was “very disappointing, given it erased most of May”™s big gains. There was some positive news, with construction and manufacturing posting gains, but that was offset by declines across most other sectors. 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. The leisure and hospitality sector”™s significant losses spotlight that volatility””that sector historically gains jobs in June, not lose 1,700 positions.”
DiPentima added, “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. “In addition, the labor force declined for a sixth consecutive month and is down 39,600 people (2%) over the last 12 months. Job growth is essential for building a robust, vibrant economy and we must address the factors driving the labor shortage and employment in the state.”