Data: Conn. private sector jobs grow by 1,100 last month
Connecticut’s economy added 1,100 private sector jobs in October, led by employment growth from the hospitality, health care and social assistance industry sectors, officials with the state Labor Department said Thursday.
October’s employment gains in Connecticut represented the 10th consecutive month the state has seen non-farm employment growth, although the 4,400 jobs state officials had said were added in September were reduced by 100. Non-farm employment in the state grew by 500 jobs last month.
But government employment in the public sector declined by 600 jobs in October, resulting in a net gain of 500 jobs overall.
Despite adding jobs in October, Connecticut’s unemployment rate rose by three-tenths of a percentage point to 4.3 percent. Danté Bartolomeo, Connecticut’s labor commissioner, said despite the increase in the jobless rate, unemployment claims remain at historic lows.
“Job growth, significant increases in labor market participation, and record low unemployment filing are indicators of Connecticut’s strong underlying economy,” Bartolomeo said. “Some months are stronger than others, and Connecticut employers continued to add jobs in October, which is good news for job-seekers. The change of seasons also brings employment changes, and we expect normal holiday fluctuations in the coming months.”
Statewide, employers have about 100,000 jobs posted, she said.
The accommodation and food services sector, which is part of the state’s hospitality industry, added 7,500 jobs last month compared to October 2021, which represents a 6.4 percent increase, according to state labor officials. The health care and social assistance sector added 2,100 jobs last month compared to October 2021, an 0.8 percent increase.
Fred Carstensen, a professor of finance and economics at the University of Connecticut and director of the Connecticut Center for Economic Analysis at the school, said the October economic data provides a mix of positive and negative news.
“It’s encouraging that we added jobs; we’d like to see more, but at least the trend remains headed in the right direction,” Carstensen said.
But a closer look at the October data, he said, yields some of the negatives.
Carstensen said the number of Connecticut residents who work outside the state declined by 4,200.
“The thing that has saved Connecticut since 2008 is out-ofstate employment,” he said of the state’s economy.
Another nagging economic problem, according to Carstensen, is the state has only recovered about 67 percent of the jobs lost during the 2008 recession.
Chris DiPentima, president and chief executive officer of the Connecticut Business and Industry Association, said, “October represents the slowest month for the year and perhaps signals a cooling in the job market, a pattern we’ve seen over the past two years.”
“While there is much to be positive about, it’s clear employers are apprehensive about the possibility of an economic slowdown in the coming months,” DiPentima said. “The labor crisis remains the biggest obstacle to our economy reaching its full potential. We must embrace all potential solutions for solving this crisis, an issue that we expect will be a key focus of the General Assembly when it convenes in January.”
CBIA, which is the state’s largest business group, has developed what it calls Transform Connecticut, a set of policy recommendations which DiPentima said “focus on common sense solutions around workforce training, housing, student loans, healthcare, and immigration.” “We look forward to working with the legislature and the ad
ministration to improve and implement more pathways to rewarding careers and open doors to opportunity for all communities and residents,” he said.
Economist Donald KlepperSmith said the state’s level of economic health over the remainder of this year and in early 2023 depends on whether inflation is brought under control.
“When you’re spending more money on home heating oil, there’s not going to be a lot of money lying around at the end of the month for television sets, large appliances and other durable goods,” said Klepper-Smith, who lived in Connecticut for decades before moving to South Carolina, though he said he still has clients in this state.