Connecticut’s job market hit a 16-year high with 1.7 million payroll jobs, according to the annual benchmark report released Friday by the Connecticut Department of Labor.
Private sector growth has surged, with 1.46 million jobs recorded, surpassing previous data. The private sector’s rebound to 102.9% from the pandemic underscores the resilience of Connecticut’s economy, according to officials, with total job recovery reaching 101.6%.
“We have stable and sustained job growth, an increasing labor force participation rate, and we have, so far, weathered the impacts of COVID variants, supply chain disruptions, inflation, and the possibility of a recession,” Labor Commissioner Dante Bartolomeo said. “Connecticut’s economy is in good shape and poised to continue growing. The rising unemployment rate signals that new workers are entering the market—that’s good news for employers who are trying to recruit, but hiring is still a challenge. Workforce development is critical for future growth and stability.”
In 2023, Connecticut added 18,400 jobs, building on the momentum of the previous year’s gain of 28,500 positions. Despite a temporary decline in job growth from July to December, averaging 1,000 lost jobs per month, January 2024 saw a notable uptick of 7,400 jobs.
However, the unemployment rate inched up to 4.4%. While still relatively low, economists typically consider 4% as full employment. Connecticut maintained an unsustainably low unemployment rate below 4% for much of 2023.
Labor officials said the unemployment rate increase indicates that more workers are entering the job market, not that workers are losing their jobs.
“When I speak with business leaders, they repeatedly tell me that they have job openings, but they need workers to fill them. Through robust workforce training programs, we are determined to connect jobseekers who feel disconnected from the labor force or are unemployed or underemployed with employers that can lead them to good-paying, long-lasting career opportunities,” Gov. Ned Lamont said.
Six of the 10 major industry sectors displayed employment gains in January 2024, signaling a return to normalcy. Sectors such as education and healthcare are witnessing robust growth, reminiscent of pre-pandemic levels. Meanwhile, the retail sector continues to experience job losses, a trend observed before the pandemic.
The government sector also saw a notable increase of 800 jobs in January 2024, marking a year-on-year gain of 3,600 positions since January 2023.
Despite these positive indicators, approximately 33,000 individuals remain unemployed in Connecticut. However, the state’s labor force participation rate stands at a healthy 64.4%, surpassing the national average of 62.5%.
While monthly labor reports are based on employer surveys, the annual benchmark report provides a more comprehensive analysis of payroll employment, offering a clearer picture of industry health over the past year. The regular February labor report is slated for release on March 21, 2023.
