Sen. Harding: “Highly concerning” CT Manufacturing Jobs News
September 20, 2024Report Shows Labor Market Stagnating, Job Losses Over Last Two Months
CT Examiner
After expanding month-over-month during the first half of the year, Connecticut’s labor market posted two consecutive months of declining employment numbers.
Jobs fell by 2,200 in August, according to a report released Thursday by the state Department of Labor. Additionally, a revision of the July data paints a bleaker picture than initially thought.
The previous report said there was net job growth of 700 positions in July, but updated numbers showed a drop of 900 jobs. That means 1,500 fewer jobs.
Patrick Flaherty, director of the Office of Research at the Department of Labor, said in a news release that the numbers reflect a dynamic seen in prior years.
“Today’s report repeats a pattern seen in recent years of strong job growth in the first half of the year followed by slower job growth in the second,” he said. “Even with slower growth in the second half, 2023 was a year of positive job growth overall, and 2024 is on track to do the same even with monthly ups-and-downs.”
The unemployment rate fell from 3.6% to 3.4% as job seekers declined. The rate is calculated by the number of people actively seeking employment out of the total labor force.
“The low unemployment rate is an indication that the labor market remains healthy,” Flaherty said.
Connecticut’s cooling labor market coincides with a slower employment expansion nationally. This week, the Federal Reserve approved a half-point interest rate cut after holding it for 14 months at a four-decade high to help reduce inflation. Concerns about the impact of higher rates on employment rose as inflation fell below 3% in recent months and moved closer to the Fed’s target.
The only sectors that increased net employment in Connecticut in the last two months were education and health services, which added 1,900 jobs between June and August, information which added 800 net jobs, and other services with 400 more jobs.
The sector that lost the most jobs was the government, with 1,900 fewer jobs, albeit all of them in July. Professional and business services lost 1,500 jobs in the last two months; manufacturing lost 800; trade, transportation and utilities dropped 600 jobs; and construction had 500 fewer positions.
The report groups Connecticut’s urban areas for statistical purposes. In the last two months, only the New Haven area saw an increase in employment with 700 additional jobs. The Hartford area lost the most jobs at about 1,600. Bridgeport-Stamford-Norwalk lost 700 jobs between June and August.
Hartford, Bridgeport-Stamford-Norwalk and New Haven were also the areas that created the most jobs in the first half of the year.
CBIA President and CEO Chris DiPentima said in a statement that the July and August numbers showed the volatility of Connecticut’s labor market and stressed that it happened at a time when employers are holding 84,000 open job searches in the state.
“After a strong first half of the year, it’s concerning to see job losses of this size and across so many sectors,” DiPentima said. “This report serves as a reminder to policymakers that they must remain focused on addressing the issues that will unlock Connecticut’s economic potential.”
Editor’s note: Following the publication of this story, Republican State Senators Henri Martin, Paul Cicarella and Stephen Harding called the drop in manufacturing employment “highly concerning” in a written statement, and linked the news to employers unable to keep pace with retirements.
“Clearly, more must be done to strengthen Connecticut’s workforce development pipeline,” the senators said. “We must ensure that manufacturers have a viable pool of talent here in the state. We need to listen to our job creators.”
