20,000 state residents to lose jobless benefits in January
With Connecticut’s unemployment rate dropping below a federal threshold for extended benefits, more than 20,000 people are getting notifications that those benefits will dry up the second week of January.
For states with unemployment above 6.5 percent on average over three months, the U.S. Department of Labor allows for an extra 13 weeks of jobless aid after recipients exhaust their normal allotment, which is set at 26 weeks in Connecticut.
With Connecticut’s unemployment rate dropping to 6 percent in November — down 0.4 percentage points the prior month — those extended benefits will hit their sunset on Jan. 8, 2022.
The Connecticut Department of Labor estimates the state added 5,600 jobs in November, down from 7,100 in October. The October tally was revised upward by 1,800 jobs from an initial estimate last month.
“This labor report brings continued good economic news — the labor force is growing, most industry sectors are growing, and more job seekers are taking advantage of the job opportunities out there,” Dante Bartolomeo, DOL commissioner, said in a statement accompanying the Thursday report. “We have a lot of work ahead of us, but the numbers tell a powerful story.”
Connecticut has seen a record run of workers quitting their jobs, with an open question on how many are doing so for better opportunities versus taking a hiatus for personal reasons, including those wishing to avoid taking the COVID-19 vaccine under many workplace policies now in effect.
In response, companies are paying more for new workers and to retain their existing ones, and otherwise widening their net in an effort to recruit.
DOL estimates Connecticut has now recovered just over 220,000 of the 293,000 lost permanently statewide during the early stages of the COVID-19 pandemic, or roughly three of every four positions. DOL estimates total payroll enrollment at 1.62 million, not including self-employed workers.
Manufacturing had the largest growth of any major sector tracked by DOL, with an estimated 1,700 new jobs in November, despite ongoing struggles in getting materials and components delivered on time to produce goods. Construction had the biggest percentage gain, with 1,200 new jobs for a 2 percent gain on the DOL report.
In a written statement, the head of the Connecticut Business & Industry Association noted that Connecticut’s overall 3.4 percent growth in jobs this year is nearly a full percentage point behind the U.S. gain. Unemployment nationally was at 4.2 percent in November.
“While we are heartened by the November report, our overall jobs recovery still trails most of the region and country,” stated Chris DiPentima, CEO of CBIA. “There are 72,000 fewer people working in Connecticut today than in February 2020, despite an estimated 70,000 unfilled job openings, and the state’s labor force is down five [percent] from prepandemic levels.”