While Connecticut’s jobless rate remained unchanged in January, employee wages and hours continue to rise, an indication that workers are earning more consistent pay raises after seeing their wages stagnate following the Great Recession.
The state’s private sector workweek averaged 33.7 hours in January, up by half an hour (1.5 percent) from the year-ago estimate of 33.2 hours, according to data from the state Department of Labor. Meanwhile, average hourly earnings stood at $28.26, up 42 cents, or 1.5 percent, from Jan. 2014. The resulting average private sector weekly pay stood at $952.36 at the end of January, up $28.07, or 3 percent, from a year earlier.
Higher wages and hours are a good sign for Connecticut’s economy because it increases consumer purchasing power, which is a key driver of economic growth.
In the aftermath of the Great Recession, many workers saw their pay stagnate, or even decline, as employers reined in costs.
As Connecticut’s economy slowly adds more jobs, however, employers face increased competition for talent, which helps drive up salaries and wages.
Connecticut added 6,400 jobs in January and 24,600 jobs over the past year, according to DOL. The state has now regained 90,500 positions, or 76.1 percent of the 119,000 jobs lost in the Great Recession.
— Greg Bordonaro
