An annual analysis of Connecticut’s jobs data shows the state dropped its unemployment rate to 5.1% at the end of 2021 before omicron-related job losses pushed that figure up to 5.3% in January.
Both figures are below the 5.8% mark researchers had previously calculated for December 2021, indicating Connecticut’s comeback from the COVID-19 lockdowns of 2020, though gradual, may be stronger than once thought.
From December 2020 to December 2021, the state added 55,411 jobs, up from the 51,000 previously estimated. From January 2021 to January 2022, jobs grew by 51,000, according to the state Department of Labor.
Still, the ongoing COVID-19 pandemic chipped away at some of that progress, contributing, it is believed, to a loss of 700 positions in the first month of 2022. December’s jobs figures were also revised down, to reflect a loss of around 500 jobs.
“Job growth was stronger in 2021 than previously estimated and the unemployment rate was lower,” said Patrick Flaherty, director of the Office of Research at the state Labor Department. “Connecticut’s economy was not immune to the effects of the omicron variant which caused weakness in December and January. Nevertheless, important industries such as manufacturing and construction continued to add jobs.”
According to the Labor Department’s report, the government, manufacturing and construction sectors all added employees in January, while the professional services, transportation, utilities, hospitality, health, education and finance industries shed workers.
Connecticut is now estimated to have recovered 225,500 jobs, or around 78%, of the 289,400 jobs it lost during the early months of the pandemic in 2020.
