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Home Business Journals

State jobless rate rises to 4.2% in December 2025

Payroll jobs down 500 after job gain of 2,100 in November

Gary Larkin by Gary Larkin
January 27, 2026
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Connecticut Department of Labor Commissioner Dante Bartolomeo

WETHERSFIELD – Connecticut’s unemployment rate jumped 0.2% in December 2025 to 4.2%, according to the state Department of Labor’s (DOL) latest job figures.

DOL Commissioner Danté Bartolomeo on Monday released the December Labor Situation report that showed that after gaining 2,100 jobs in November, payroll jobs declined by an estimated 500 in December.
“There was considerable volatility in 2025 with national issues playing a role in dampening Connecticut’s job growth,” the commissioner said. “Over the past year, Connecticut’s workforce declined; that makes it harder for employers to hire and it reduces retail and services spending. Employers have around 70,000 open jobs in the state.”
The state has 1,935,700 people in the labor force. Over the past six months, Connecticut’s labor force dropped by 20,000 workers. Average weekly earnings were up 3.0% over the year, essentially offsetting inflation.
“Connecticut’s economy has shown resilience through some ups and downs this year,” said CTDOL Director of Research Patrick Flaherty. “As we’ve said in the past, the state’s economy will follow national trends, so we remain watchful of inflation, the impact of tariffs, and overall hiring. Looking ahead to 2026, we expect a modest growth year in Connecticut — as long as the U.S. economy avoids an economic downturn.”
State Senate Republican leadership had some sharp, politicized criticism of the December jobs figures.

“Where’s the economic growth?” said a statement from Sens. Stephen Harding, Henri Martin, Rob Sampson, Ryan Fazio, Eric Berthel, Jeff Gordon, Paul Cicarella and John Kissel. “It’s apparently not here in deep blue (Democrat) Connecticut. We lost 2,200 jobs in 2025. Our labor force is declining by tens of thousands of people. (actually 20,000)

“And our healthcare jobs? Anemic growth there, even as the rest of the country is seeing healthcare jobs increase. It boils down to one word: Unaffordability.”

Some of the highlights of the December 2025 jobs report:

  • Job growth over the year — December 2024 to December 2025 — has been volatile. Connecticut added jobs in six of 12 months; however, state employers lost 2,200 jobs overall for the year.
  • Top gainers in 2025: Healthcare and social assistance, professional and scientific services, and local government.
  • Retail trade, accommodation and food services, and private education lost the most jobs in 2025.
  • Connecticut’s labor force participation rate was unchanged at 64% compared to the national rate of 62.4%

Continued unemployment claims are around 35,000, slightly higher than last year at this time when they were around 32,000.

 

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Gary Larkin

Gary Larkin

Gary Larkin is the Fairfield County Business Journal editor. He is a veteran journalist, writer, author, adjunct professor, and father of three. He has worked for such dailies as The Bond Buyer, Torrington Register-Citizen, Bristol Press, New Britain Herald and such weeklies as The Hartford Business Journal, Westport News, Darien News-Review, and Riverdale Press.

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