The state’s unemployment rate jumped to 8.5% in February despite Connecticut adding 3,000 jobs during the month, according to the Department of Labor.
The uptick in the unemployment rate led to the reactivation of extended checks for the jobless, who will get an additional seven weeks of unemployment benefits.
The February unemployment rate rose to 8.5% from 8.1% in January. The rise triggered expansion of benefits under the federal High Extended Benefits program.
“High Extended Benefits will infuse millions of dollars into households and the economy as both recover from the pandemic,” DOL Commissioner Kurt Westby said.
Connecticut added 3,000 jobs in February, according to the DOL’s monthly report, with the private sector gaining 4,000 jobs. January unemployment numbers were revised from a 100-job loss to a gain of 1,000 jobs.
Sectors gaining jobs included professional and business services (up 2,400); trade, transportation and utilities (up 2,200); and leisure and hospitality (up 1,300). The government sector lost 1,000 jobs and education lost 800.
According to the DOL, the state has recovered 58.4% of the 292,400 jobs lost during March-April 2020, the worst period of the pandemic so far.
States qualify for High Extended Benefits when their three-month average unemployment rate is 8% or higher. In Connecticut, about 28,000 people will go from getting 13 weeks of benefits to 20 weeks.
The state last triggered on to High Extended Benefits in August 2020 and triggered off in November 2020.
The additional weeks of benefits will not impact Pandemic Unemployment Assistance filers as they are already receiving 79 weeks under the American Rescue Plan.
About 580,000 workers have filed for unemployment benefits in the state in the past year, costing about $7.5 billion in state and federal funds.
