State adds 1,600 jobs in May
Connecticut added 1,600 jobs in May, while unemployment declined slightly, according to preliminary data released Thursday by the state Department of Labor — but worries persist in the business community about the state’s economic recovery.
Factoring in last month’s uptick, the state has increased employment by 2.6 percent in the past year and recovered more than 80 percent of the approximately 292,000 jobs lost in March and April 2020 during shutdowns sparked by the first wave of the COVID-19 pandemic. But the gains in sectors such as professional and business services and leisure and hospitality were mitigated by declines in construction, manufacturing and government, while headwinds such as inflation and worker shortages are complicating the jobs comeback.
“Connecticut residents are more concerned than ever about the state’s economy,” Chris DiPentima, chief executive officer and president of the Connecticut Business & Industry Association, said in a statement. “We need to hear solutions from candidates on the campaign trail that will address the state’s labor shortage and help business owners who are already struggling with the cost of inflation.”
The state’s unemployment
rate dropped last month from 4.4 percent to 4.2 percent, marking its 10th decrease in the past 11 months. But it is still running above the national rate, which totaled 3.6 percent last month. In April, the most-recent month for aggregated Bureau of Labor Statistics data on all 50 states’ unemployment levels,
Connecticut had the ninth-highest unemployment rate. Among neighboring states, the jobless rate in April was 4.1 percent in Massachusetts, 4.5 percent in New York and 3.2 percent in Rhode Island.
“Connecticut continues to have high workforce participation, and the job market remains a strong one for job
seekers,” Labor Department Commissioner Danté Bartolomeo said in a statement. “Positive indicators this month include another drop in the unemployment rate and good jobs numbers out of the private sector. It’s important to note that economists are watching energy prices for impacts on residents and businesses, as well as inflation, the stock market and other factors that would impact Connecticut’s financial services sector.”
Labor Department officials additionally noted that, as they expected, weekly unemployment filings increased slightly due to seasonal layoffs. Those filings are now running just above 17,000.
As it does every month, the Labor Department also reported Thursday revisions in the previous month’s numbers. It updated the state’s April jobs gain to 1,400 from an originally estimated increase of 1,600.
Last month, seven of the state’s 10 sectors expanded their employment. Professional and business services led with a gain of 1,400, followed by increases of 800 in education and health services; 500 each in information, leisure and hospitality and “other services”; 400 in trade, transportation and utilities; and 300 in financial activities.
“This month we saw good news from the food services and hospitality sectors — trends we hope will continue as we head into summer,” Patrick Flaherty, the labor department’s director of research, said in a statement. “Additionally, the 2022 household survey data seems to bear out what economists had opined during the pandemic: Workers are leaving payroll jobs to pursue self-employment. Economic recoveries are always uneven. However, this was a solid jobs report.”
Employment declined, however, in three sectors. Government and construction and mining each lost 1,300 jobs last month, while manufacturing contracted by 200 positions.
There are about 100,000 job openings in the state, according to the labor department. Given the numerous options for job seekers, many employers are grappling with worker shortages.
“CBIA urges lawmakers to focus on attracting and keeping skilled workers by making it easier to obtain occupational licenses in Connecticut, exploring ways to become a more immigrant-friendly state and keeping college students here following graduation,” DiPentima said.
While making progress in recovering the jobs shed during the first wave of the pandemic, even in early 2020 the state still had not regained all the jobs lost in its 2008-2010 recession. About 1.65 million people were employed in Connecticut in May, compared with approximately 1.72 million in March 2008. The latter number marked the peak in Department of Labor data going back to 1982.