The state lost 2,200 jobs in August, marking a change in direction amid a tightening labor market, according to the state Department of Labor’s August jobs report.
Despite the losses, nonfarm employment in Connecticut remained above its highest levels in 2008. The state has recovered 104.1% of its 291,100 nonfarm jobs lost during the COVID lockdown from March to April 2020.
Connecticut’s unemployment rate dropped from 3.6% in July to 3.4% in August, as its labor force participation rate fell 0.2% to 64.2%. A year ago, the state’s unemployment rate was 3.8%.
The national unemployment rate is 4.2%.
Prior to July, the state had seen six consecutive months of job growth.
Initially, the state DOL reported that the state added an additional 700 jobs in July – down from 3,300 jobs added in June.
However, in the DOL’s August report, it revised July’s gains to reflect a loss of 900 jobs.
DOL Commissioner Danté Bartolomeo said the state’s low unemployment rate coupled with its relatively low number of unemployment claims (below 25,000 in August) show that its labor market “remains healthy.”
She said the agency is, however, monitoring economic indicators, including layoff data, that may be starting to increase.
Connecticut’s labor force has increased by more than 3,400 workers since December 2023, the report says. There are about 84,000 job openings in Connecticut.
So far, 2024 mirrors labor trends in Connecticut since 2020, with strong early-year job growth that “tapers and ends by the year down.”
“Building — and housing — the workforce is critical,” Bartolomeo said. “Employers are facing hiring challenges as they try to replace retiring workers and add new positions.”
There are currently 1.7 million private and government sector jobs in Connecticut, up 12,800 from August 2023, according to the report.
The state’s manufacturing workforce declined 0.4% in August, likely because employers are unable to keep pace with retirements, the report states.
