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Warm weather boosts hiring in CT; workers still quitting at higher rate

Connecticut’s labor market recorded another month of job gains in February, inching the state closer to a full recovery from the pandemic. 

The state added 5,600 jobs in February, according to the state Department of Labor, which followed 8,800 job gains in January. 

Mild weather in the Northeast is helping boost employment to start the year, labor officials said. 

“Overall, this is a good jobs report showing continued economic growth and stability for Connecticut,” said Patrick Flaherty, director of the labor department’s office of research. “The warm weather is most likely accelerating hiring that normally happens later in the spring. Additionally, the labor situation surveys took place prior to the bank failures, so it may be a few months before we see those impacts on the state’s financial sector, employer expansion, or hiring.”

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Despite the gains, Connecticut’s unemployment rate did tick up slightly to 4%. The U.S. unemployment rate is 3.6%.

Connecticut has now recovered 96.5% (279,100) of the 289,100 jobs lost during the 2020 COVID lockdown period, labor officials said. 

Meantime, the state’s labor market remains tight. The voluntary quit rate in Connecticut is above pre-pandemic levels with 34,000 employees leaving their jobs in January, most going to new jobs. However, the state’s overall 2% quit rate is tied for third lowest in the country.

Connecticut employers currently have 97,000 job openings, well above pre-pandemic levels, but at 5.5%, the state has the second-lowest jobs-opening rate in the country. 

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The state’s February labor participation rate, currently 64.7%, continues to be higher than the national average of 62.5%. 

Unemployment insurance weekly filings remain low at about 30,000, labor officials said.
 
In February, seven private industry supersectors generated employment gains, while three declined.

The sectors that gained jobs in Connecticut included:

  • Educational and Health Services +2,200, 0.6%, 351,800
  • Leisure and Hospitality +1,700, 1.1%, 154,800
  • Professional and Business Services +900, 0.4%, 224,400
  • Trade, Transportation & Utilities +900, 0.3%, 297,600
  • Construction and Mining +400, 0.6%, 62,400
  • Other Services +200, 0.3%, 62,600
  • Manufacturing +200, 0.1%, 158,600

The three industry supersectors that lost jobs in February were:

  • Government -500, -0.2%, 228,600
  • Information -300, -1.0%, 31,000
  • Financial Activities -100, -0.1%, 115,700
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