Jobless rate lowest since ’08

Malloy used news to stress administration has made progress improving state’s economy

Gov. Dannel P. Malloy got some good job news Monday.

The state Department of Labor said Connecticut added more than 10,000 private sector jobs in September and the unemployment rate now is 6.4 percent, the lowest since November 2008.

The department also said the initial August report of 3,600 jobs was cut by two-thirds to a loss of 1,200 jobs.

Unemployment was 6.6 percent last month; it was 7.7 percent in September 2013.

“September employment numbers are very encouraging with strong gains in estimated payroll employment. Some of this gain was expected, especially in local public education and leisure and hospitality, where seasonal shifts may have been missed in August,” said Andy Condon, director of the Office of Research, in a statement.

The jobs gain in September is the largest since April 1994 and the seventh monthly gain this year.

Malloy, who is seeking reelection, said he won’t be satisfied until everyone who wants a job has one, but he was pleased with the numbers.

“Today’s jobs report is another sign that we are making steady progress in improving our state’s economy. With the addition of these jobs, we’ve added nearly 70,000 private-sector jobs since January of 2011,” he said.

“That’s one of the best periods for private-sector job growth since the 1990s. And when you look at annual job growth on a monthly basis, what you see is that the state has gained jobs every single month,” Malloy said in a statement.

The governor, speaking at Penn Globe Monday afternoon in North Branford, a firm that has taken advantage of funds fromthe Small Business Express and other programs to hire additional personnel, said he feels the employment numbers will hold.

“We’re having the lowest, continuing-to-drop unemployment claims in recent history. It is consistent,” Malloy told CtNewsJunkie. “Every year I’ve been governor, the end-of-year review of these numbers has adjusted them upwards, not downwards.” Withholding taxes paid by self-employed individuals and sales tax collections show the state is moving steadily forward, Malloy said.

“I feel gratified,” Malloy said Monday. He said the state was in a “deeper hole” when the recession hit in 2008 and it has taken longer to get out of it.

Penn Globe added three full-time workers to its 12-person staff with state help, one of 1,160 businesses whohave taken advantage of various programs and have promised to add 4,171 jobs in the state.

Malloy’s opponent, Republican opponent, Tom Foley, has been stressing the loss of jobs in August, which was the first dip in six months of gains.

Foley’s ad campaign continues to focus on the economy, the $1.5 billion tax increase approved by the governor and a survey showing almost half of residents would leave the state if they could.

Malloy points to the progress that has been made to bring back jobs, his cuts to the state debt, increased funding to towns and a $500 million surplus, despite having to dealwith a $3.6 billion deficit in 2011.

In the September Quinnipiac Poll, 40 percent said the economy and jobs are their biggest issues and they feel Foley can do a better job handling them.

With two weeks to go until Election Day, this was an important positive labor department report for the incumbent who says his policies will bear more fruit in the next four years.

Jerry Labriola, chairman of the state Republican Party, said any growth is good news, but said, “September now marks 30 consecutive months of the Connecticut unemployment rate, far exceeding the national average. While the rest of the country enjoys real economic recovery, Connecticut continues to struggle under Governor Malloy.”

The national unemployment rate dropped to 5.9 percent in September, according to the Bureau of Labor Statistics. That marks the first time unemployment has been below six percent since July 2008. Approximately 248,000 new jobs were created during September across the country.

“Connecticut’s economy will continue to languish if we continue down the same path of higher taxes, oppressive regulation, and irresponsible government spending. Tom Foley will bring us in a new direction and restore pride and prosperity in Connecticut,” Labriola said in a statement.

Chris Cooper, spokesman for Foley, expressed similar sentiments.

“We are glad that Connecticut picked up jobs last month but it is still not enough. We have only recovered 70 percent of the jobs lost during the recession and we still have one of theworst recovery rates in the nation. Our weak recovery is the result of Dan Malloy’s failed policies and things will not improve without a change of leadership and a new direction.”

Joe Brennan, executive vice president for the Connecticut Business & Industry Association, also weighed in.

“Although Connecticut has gained back over 70 percent of jobs lost during the recession, we still lag the rest of the nation, which has fully recovered,” he said.

The number of unemployed residents declined by 23,682 (16.5 percent) since September 2013 to 119,842, which is a new recovery low point, according to the department’s report, while the jobs total are at a recovery high.

The state has now recovered 85,300 positions, or 71.6 percent of the 119,100 nonfarm jobs lost in the state during the March 2008 through February 2010 recession.

The private sector continues to regain jobs at a faster pace, with 93,700, or 83.7 percent, recovered since the recession.

Condon advised that the unemployment rate should be looked at in the context of longer trends over several months as monthly samples can be volatile in either direction.

Year to date, Connecticut has created 15,700 jobs (about 1,744 per month) on a seasonally adjusted cumulative basis, much stronger than last year’s pace of 8,000 through September 2013, the department reported.

Seven of the 10 major industry subsectors posted gains, led by trade, transportation and utilities, according to the department.

Five of the six labor market areas added jobs, again led by Hartford with 2,700 jobs, while New Haven only had 600.