Connecticut’s labor market sent mixed signals in May, as the state shed 6,500 payroll jobs, according to a jobs report from the state Department of Labor released Monday.
The decline was mainly due to a temporary labor strike and a one-time retail restructuring, the DOL said.
The Pratt & Whitney labor strike, which temporarily affected manufacturing payrolls, has been resolved, and those jobs are expected to show recovery in June. The undisclosed retail restructuring, however, resulted in permanent job losses.
Commissioner Danté Bartolomeo acknowledged the volatility, but highlighted positive trends.
“May had some ups and downs,” Bartolomeo said. “One of the bright spots is that the labor force is fully recovered from pandemic losses and at an all-time high — good news for employers who have about 70,000 jobs available in Connecticut right now.”
She added that Connecticut’s economy remains steady and is moderating after the rapid gains seen in the post-pandemic period.
Connecticut’s labor force has fully recovered from its pandemic losses, with 1,960,143 workers counted as either employed or actively seeking work — an increase of 20,000 over the past year.
That surpasses the previous high set in November 2019, when the labor force stood at 1,942,988.
The state’s unemployment rate edged up by 0.1 percentage point to 3.8%, a change largely attributed to more people entering the job market rather than an increase in layoffs or job losses.
Patrick Flaherty, the DOL’s director of research, emphasized that the May job losses were driven by unusual, non-recurring events.
“There are no major ongoing disruptions to the state’s job market; however, May’s job numbers were impacted by some one-off events that we don’t expect will continue,” Flaherty said.
A wet, cold spring also slowed hiring in some seasonal sectors, further dampening May’s employment numbers, the DOL said.
Despite the job losses, Connecticut’s unemployment rate has remained below the national average for 29 consecutive months, currently standing 0.4 percentage points lower than the U.S. rate. Average weekly unemployment claims fell 27% from the previous month, though they are up 4% compared to last year.
The report also noted a continued decline in federal government jobs, with 400 positions lost since January, including 100 in May.
