Job Numbers Up For Fourth Month

State’s Unemployment Remains High As Private Sector Grows, Government Loses Jobs

Employers in Connecticut created a net 1,100 new jobs in August, the fourth straight monthly gain and enough to push the unemployment rate down one-tenth of 1 percent, to 4.3 percent, the state Department of Labor said Thursday.

Over the year, nonagricultural employment in the state grew by 18,800 jobs, or 1.1 percent.

In another bit of good news, the agency said a decline of 1,200 jobs initially reported in July was revised upward, to a gain of 500.

“After dips in March and April, we have now seen four straight months of employment gains in Connecticut,” said Andy Condon, the labor department’s research director.

Construction, manufacturing, education and health services and leisure and hospitality are showing “good growth,” he said. But the financial sector, a “traditional employment foundation in Connecticut,” continues to show weakness.

Though declining, the state’s unemployment rate is the highest in New England, according to the U.S. Department of Labor. New Hampshire posted the region’s lowest rate in July, the most recent month available, at 2.7 percent.

The monthly jobs report attracts greaterthan-usual interest because Connecticut’s slow-growth economy and uneven job creation loom large in the races for governor and General Assembly that will be decided on Election Day.

Economist Don Klepper-Smith said Connecticut’s labor market is “treading water … with no discernible strength.”

Private-sector employment grew by 1,900 in August, adding 23,900 jobs, 1.6 percent, over the year. The state’s private sector continues its expansion from the Great Recession and has regained 113.2 percent of jobs lost in the economic downturn.

But government continues to post losses in response to volatile tax revenue. The sector, which includes state and municipal agencies, public colleges and universities and the two Native American-operated casinos in southeast Connecticut, posted a loss of 800 jobs. Over the year, government employment fell 5,100, a 2.2 percent decline.

Overall, Connecticut has recovered 88.5 percent, or 105,400, of the jobs lost in the Great Recession. Connecticut’s job recovery is in its 102nd month and the state needs 13,700 net new jobs to reach overall employment expansion, the Department of Labor said.

Gov. Dannel P. Malloy, asked at a news conference about the jobs report, said his administration has announced economic development projects this year that are expected to lead to 9,700 new jobs. That should move Connecticut closer to regaining the 13,700 lost jobs.

In addition, he said he has sought smaller

government and reduced its size, which has made it harder to recapture all lost jobs.

“As of three months ago, no executive branch in the 50 states has shrunk as much as mine has,” the governor said.

“But what’s most encouraging is that we have created more than 23,000 private-sector jobs over the last 12 months,” Malloy said. “That’s the biggest one-year gain since early 2011 when we were just beginning to recover from the Great Recession. This is not just a blip. It is a long-term, positive trend and it should be highly encouraging for Connecticut residents and businesses.’’

Six of the 10 major industry sectors gained employment: Education and health services led growing industries with 1,000 net new jobs and leisure and hospitality added 700 jobs.

The financial activities sector contributed 200 new jobs in August.

Of Connecticut’s six labor market areas, Hartford, Bridgeport-Stamford-Norwalk and Waterbury added jobs.

Employment declines were posted in the the Norwich–New London– Westerly, R.I. and New Haven labor market areas.

Employment numbers in Danbury were unchanged in August.