Connecticut employers cut an estimated 5,700 jobs in September and the state’s labor force shrank for the third month in a row, offering new signs that hiring is cooling in step with national labor-market trends, according to a report released Wednesday by the state Department of Labor.
The state’s unemployment rate held at 3.8% for the fifth consecutive month. Even with the stagnant jobless rate, Connecticut continued to outperform the national figure, which stood at 4.4% in September.
The monthly release, typically published in October, was delayed by the federal government shutdown. The report includes updated figures for August, when job gains were revised down from 900 to 500.
“While monthly numbers fluctuate, September’s report may signal that Connecticut’s economy is feeling federal policy changes,” Labor Commissioner Danté Bartolomeo said. “Declines in the state’s labor force and September declines in Health Care and Social Assistance jobs suggest that immigration policy and federal funding cuts are affecting the labor market.”
Nonfarm payrolls fell to 1,714,100 in September. Private-sector employers accounted for the entire monthly decline, cutting 5,700 positions and reducing the sector total to 1,477,900. Over the past year, private-sector hiring has netted a gain of 3,500 jobs.
Government payrolls were unchanged at 236,200.
Construction posted the only notable increase in September, adding 600 jobs and remaining near a 16-year employment high. Leisure and hospitality, other services and government employment were flat.
Job losses were spread across several major industry groups. The broad education and health services sector shed 1,800 jobs, including an estimated 1,700 decline in health care and social assistance — the state’s largest industry.
Financial activities and trade, transportation and utilities each fell by 1,700 positions. Professional and business services declined by 600 jobs, manufacturing by 300 and information by 200.
Patrick Flaherty, the department’s director of research, said the September readings echo what is happening nationally.
“While there are some positive takeaways from the September data, overall, this is a weak report,” Flaherty said. “Connecticut is joining the national trend towards slower job growth.
In this market it takes longer for job seekers to find a job—and they have more competition for what’s out there. This is consistent with national trends.”
The report also showed that the labor force dropped by 5,400 in September and has fallen by 12,800 since January. The figure counts residents who are either employed or actively looking for work. Unemployment claims ticked up slightly to 30,700.
Connecticut has added 4,500 jobs over the past year, but officials said the pace of hiring appears to be slowing after private-sector employment reached an all-time high in August.
