Connecticut’s unemployment rate rose for the sixth straight month in June, climbing one-tenth of a percentage point to 5.2%, even as the state added 1,500 jobs and total payrolls reached a new all-time high, according to preliminary data released Monday by the state Department of Labor.
The state’s jobless rate now stands well above the national rate of 4.2%, and has climbed 1.3 percentage points since June 2025, when it was 3.9%. Connecticut’s unemployment rate has exceeded the U.S. rate for six consecutive months.
Nonfarm payrolls grew 0.1% in June, to 1,726,500 jobs. The state has gained 9,300 positions over the past year, a 0.5% increase. May’s preliminary job gain of 500 was revised upward to 1,100.
Patrick Flaherty, director of the labor department’s Office of Research, said Connecticut has added more jobs so far in 2026 than in all of 2025, with manufacturing up 4,700 jobs this year and construction employment at an 18-year high.
“The rise in the unemployment rate suggests some workers are taking longer to find a job than a couple of years ago when the high quit rate led to more openings for new labor force entrants,” Flaherty said.
The report also showed a continued contraction in the state’s labor force, which fell to 1,889,100 in June, down 46,900 from a year earlier. The number of unemployed residents rose to 97,600, up 22,700 over the year.
Five of the state’s 10 major industry sectors added jobs in June. Trade, transportation and utilities led the way, up 1,200 positions, followed by construction and mining, which gained 600 jobs. Manufacturing added 500 jobs, while information and private education and health services each grew by 300.
Leisure and hospitality shed 700 jobs, financial activities lost 600 and government employment dipped by 100. Professional and business services and other services were unchanged.
Federal government employment in Connecticut is down 900 jobs, or 5%, from a year ago, to 17,300.
Among the state’s major labor market areas, New Haven and Bridgeport-Stamford-Danbury each added 700 jobs in June, while Waterbury-Shelton gained 400. The Hartford region shed 100 positions, and Norwich-New London-Willimantic lost 200.
Private sector wages in June continued to rise, but failed to keep pace with inflation. Average hourly earnings reached $39.78, up 84 cents, or 2.2%, from a year earlier. The consumer price index rose 3.5% over the same period.
Average weekly initial unemployment claims totaled 3,846 in June, down 12.8% from June 2025.
