State adds jobs but unemployment rises

State added 7,000 jobs but unemployment rate increases

May employment numbers also were revised downward from the original estimate of 6,700 to 5,600.

The New Haven area was one of the primary drivers behind job growth in Connecticut during June, as the state added 7,000 jobs last month.

Officials with the state Department of Labor said Thursday that the New Haven Labor Market Area added 1,600 jobs during the same period, leading all other regions in the state in employment growth.

Thursday’s employment news wasn’t all good, though.

Despite the employment gains, Connecticut’s unemployment rate rose 0.1 percent to 5.0, 0.6 percent higher than the national level.

And May employment numbers in Connecticut were revised downward from the original estimate of 6,700 to 5,600.

“June showed another sharp increase in payroll jobs over May and private sector jobs have now completely recovered from the 2008-2010 employment recession,” Andy Condon, the state Department of Labor’s research office director, said in a statement. “Our unemployment data continues to show growth in the labor force and employment, indicating that workers are entering or rejoining the labor force and most are finding jobs.”

The leisure and hospitality sector led all of the state’s large employment sectors in June, adding 4,400 jobs. Most of the jobs in that sector during June came from restaurants and hotels, which accounted for 3,800 workers of the overall leisure and hospitality total.

Donald Klepper-Smith, chief economist and director of research for New Haven-based DataCore Partners, said that while the number of jobs added in both May and June is encouraging, he is skeptical Connecticut can sustain the growth.

”We’re still dealing with the combination of persistent budget problems at the state and local level, waning business confidence, multiple downgrades in the state’s bond rating, a potential bankruptcy within the city of Hartford, and greater levels of overall economic uncertainty, which do not bode well for Connecticut’s job market over the nearterm,” Klepper-Smith said, adding that he’s concerned the state could fall into a recession. “My expectation is that the official Connecticut unemployment readings will continue in a range near 5 or 6 percent over the next year. I expect that profound structural changes, only modest economic growth, and tempered demand for labor keeps unemployment high by historical standards, particularly in our metro regions.”