Connecticut loses 7,200 jobs in October, but unemployment rate drops

The state Department of Labor reported that Connecticut lost 7,200 jobs in October, yet its unemployment rate dropped by 0.3 percent for the month to 5.1 percent from a year earlier.

“Connecticut”™s two monthly measures of labor market health continue to send mixed signals,” Director of the Office of Research Andy Condon said. “Payroll job counts have declined for four consecutive months, indicating a significant slowing of recent job-growth trends. However, the residential employment survey and model continue to show increasing employment, decreasing unemployment and a significant drop in the unemployment rate.

“We will have to await further data to see which direction our labor markets are headed,” he said.

Connecticut’s jobless rate in October 2015 was 5.4 percent, equal to that of September 2016. The U.S. jobless rate was 4.9 percent last month. The agency also revised September”™s job count, from 5,300 to 6,600 jobs lost.

Private-sector employment fell by 0.3 percent or 4,200 jobs in October, but remains up by 5,000 jobs (0.3 percent) over the year. The government supersector lost 3,000 jobs (-1.3 percent, 235,700) last month and is down over the year by 0.8 percent. Losses were also recorded in professional and business services (down 1.2 percent, -2,600), private education and health services (-0.5 percent, -1,700), leisure and hospitality (-0.9 percent, -1,400), trade, transportation and utilities (-0.3 percent, -900) and information (-0.9 percent, -300).

Connecticut has now recovered 69 percent of the 119,100 seasonally adjusted jobs lost in the Great Recession. The job recovery is into its 80th month, with the state needing an additional 36,900 jobs to reach an employment expansion.