Flaherty: After post-pandemic surge, CT job growth set to slow in 2026

Connecticut expanded rapidly after the end of the COVID-19 shutdown and has added jobs every year since. The first years after the shutdown were characterized by rapid labor turnover, an extremely high level of job openings, and extremely low unemployment. 

In 2025, the labor market looked more normal, with an unemployment rate that was above its unsustainable lows but still on the low side by historic standards, and job openings that came down from their lofty heights but remained on the high side by historic standards.  

Connecticut will likely see further slowing in 2026. Changes in federal policy on the spending side will constrain growth in some sectors, such as private higher education, while reduced international immigration will constrain labor supply.  

Nevertheless, the Connecticut economy came out of the pandemic in remarkably good shape and will avoid a downturn as long as the national economy remains in positive territory.