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January 23, 2023

CT reports first monthly job loss in nearly a year

YEHYUN KIM / CTMIRROR.ORG Sharde Vessels, left, makes a hole to fit a screw while instructor Justin Stanley watches and gives feedback at Quinebaug Valley Community College in Danielson, in the Advanced Manufacturing Center.
By Greg Bordonaro

For the first time in 11 months, Connecticut’s economy lost jobs during the month of December, state labor officials said Monday. 

Connecticut shed 1,600 jobs during the last month of 2022. The government sector was responsible for the job losses, while private-sector employment held even, according to the state Department of Labor. 

The unemployment rate in December held steady at 4.2.%.

Temporary election poll workers boosted employment in November and led to December's decline, labor officials said.

Also impacting the Connecticut economy are national issues including inflation, escalating energy costs and interest rate hikes, according to Department of Labor Director of Research Patrick Flaherty.

“Despite revisions, 2022 was a strong year for the state with the addition of 32,000 jobs, a declining unemployment rate, and total recovery of key industry sectors,” Flaherty said. “As we look ahead to 2023, we expect to see strong growth in manufacturing and construction industry jobs due to state and federal infrastructure priorities such as transportation improvements and housing expansion.”

Annual average employment in 2022 was 41,600 (2.6%) above the 2021 average, officials said. There are 1,667,900 payroll jobs in Connecticut — up more than 32,000 from December 2021.

Connecticut’s recovery since the start of the pandemic remains slow. It has only recovered 89.3% of the 289,400 jobs lost during March and April 2020, when the pandemic temporarily shut down significant parts of the state’s economy. The private sector is 92.1% recovered from the April 2020 COVID employment trough.

Nationally, July of 2022 marked the full recovery of all jobs lost during the pandemic. 

In December, five private industry supersectors generated employment gains, while five declined.

The sectors that gained jobs in Connecticut included:

  • Leisure and Hospitality +1,000, 0.7%, 151,700
  • Educational and Health Services +1,000, 0.3%, 343,000
  • Manufacturing +800, 0.5%, 161,200
  • Trade, Transportation & Utilities +200, 0.1%, 297,600
  • Financial Activities +100, 0.1%, 116,300

The sectors that lost jobs included: 

  • Government -1,600, -0.7%, 226,700
  • Professional and Business Services -1,300, -0.6%, 217,800
  • Construction and Mining -1,100, -1.7%, 62,700
  • Other Services -400, -0.7%, 60,100
  • Information -300, -1.0%, 30,800

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