CONNECTICUT, USA — The Connecticut Department of Labor (CTDOL) released a report for jobs in the state in 2023, stating it showed "solid job growth."
The annual benchmark report covers all of 2023 and January 2024 monthly labor data. According to CTDOL, the state showed "sustained job growth," with 1.7 million payroll jobs at a 16-year high.
The report says private sector growth surpassed record data at 1.46 million jobs.
CTDOL said the unemployment rate in Connecticut increased from an estimate of 4.2% up to 4.4% due to an expansion in the labor force. Last month, employers added around 7,400 jobs, and currently, 94,000 jobs are available in the state, CTDOL said.
CTDOL Commissioner Danté Bartolomeo said that the report is "further evidence" of the strong approach the state took to pandemic recovery.
"We have stable and sustained job growth, an increasing labor force participation rate, and we have, so far, weathered the impacts of COVID variants, supply chain disruptions, inflation, and the possibility of a recession," Bartolomeo said. "Connecticut’s economy is in good shape and poised to continue growing. The rising unemployment rate signals that new workers are entering the market—that’s good news for employers who are trying to recruit, but hiring is still a challenge. Workforce development is critical for future growth and stability.”
Patrick Flaherty, director of research for CTDOL, said that while there are monthly fluctuations in numbers, last year was a "solid year" overall for the state's economy.
"Employers posted seven months of growth and 18,400 jobs, making 2022 and 2023 the strongest two-year period in 25 years," Flaherty said. "The past two years may also be harbingers of a new trend of strong early-year growth followed by weaker end-of-year numbers. January seems to be in that pattern with strong job numbers that more than mitigated 2023 job losses. We are off to a good start.”
Gov. Ned Lamont applauded the jobs growth and said "We cannot afford to take our foot off the gas."
“When I speak with business leaders, they repeatedly tell me that they have job openings, but they need workers to fill them. Through robust workforce training programs, we are determined to connect jobseekers who feel disconnected from the labor force or are unemployed or underemployed with employers that can lead them to good-paying long-lasting career opportunities," he said in a statement. "This data is also a reminder that when the state strengthens our own fiscal health and adopts balanced, gimmick-free budgets – as we have done for the last several years – it gives employers the confidence to expand in our state and add more jobs.”
These are the top points from the report, according to CTDOL:
Connecticut employers added 18,400 jobs in 2023 after gaining 28,500 jobs in 2022. From January to June 2023, employers added around 4,000 a month, according to the report. From July to December 2023, jobs declined by an average of 1,000 a month. CTDOL said the decline was reversed due to the addition of around 7,400 jobs in January 2024.
The unemployment rate rose to 4.4%, which CTDOL considers relatively low. Connecticut had an unsustainably low unemployment rate, below 4% for most of 2023. According to CTDOL, the increase indicates that more workers are entering the job market, not that workers are losing their jobs.
The report states that Connecticut appears to be back to "a new normal," with the education and health sectors experiencing some of the highest growth. Pre-pandemic, CTDOL said retail was losing jobs as warehousing was gaining jobs, and the trend is continuing.
The report also said that the government sector gained 800 jobs last month and is up 3,600 since January 2023.
According to CTDOL, around 33,000 people are currently filing for unemployment in the state, and the state's labor force participation rate is slightly over 64%, compared to the national average of over 62%.
The regular February labor report will be issued on March 21.
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Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.
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