Labor report finds small net jobs gain, steady 3% unemployment

Today, the CTDOL posted its monthly labor report for the month of November, reporting a small gain of 300 jobs to the state’s workforce. In addition, it found the state to have maintained a below national average unemployment rate of 3%. At the same time last year, the state’s unemployment rate was 4.2%, which remains the current national average.

“Private sector jobs are up for the second consecutive month and are up 13,800 so far this year,” said Patrick Flaherty, Director of the Office of Research at CTDOL. “The increase in Finance & Insurance is particularly encouraging. The very low unemployment rate suggests that jobseekers are having success in the labor market.”

Chris DiPentima, president and CEO of the CBIA, had a less rosy interpretation of this month’s numbers.

“November’s small increase of 300 jobs again reflects that Connecticut’s job growth is trapped in a frustrating holding pattern,” said DiPentima, in a statement released by the CBIA. “The state has gained 9,600 jobs in the past year—at 0.6%, that’s the slowest in the region and fifth slowest in the country.”

DiPentima went on to say that lack of openings isn’t the problem, but that the state simply doesn’t “have the people to meet that demand.” He said the onus is on policymakers to ensure that the state is doing all it can to attract more working residents.

“Now policymakers must play their part- when the General Assembly session begins next month, lawmakers must examine every proposal through this lens: ‘How will this bill make Connecticut more affordable?’” said DiPentima.

The five job sectors that increased employment were Educational and Health Services (+1,000 jobs), Financial Activities (+500), Construction and Mining (+300), Other Services (+300) and Trade, Transportation and Utilities (+300). The three sectors that lost jobs were Professional and Business Services (-900), Government (-500)t, Leisure and Hospitality (-400) and Manufacturing (-300). 

Other findings of the report were slight increases in private sector jobs’ average hours and wages, the state consumer price index for urban consumers(CPI-UI), and in nonfarm jobs in two of the state’s six metropolitan areas, with slight declines in jobs for three others.

The state’s average workweek for private sector jobs was measured at 33.6 hours, up one-tenth of an hour from Nov. 2023’s average of 33.5 hours. Average hourly earnings for private sector jobs were measured at $38.32 cents, increasing $1.70 from Nov. 2023’s average of $36.62. This combination of more hours worked and higher hourly wages accounted for an average weekly earnings estimate of $1,287.55, a $60.78 increase from Nov. 2023. The Professional and Business Services sector saw the highest increase in average weekly earnings, earning $116.90 more per week, while the Financial Activities sector saw the largest reduction, earning $59.86 less per week.

While average weekly earnings increased by just under 5% from November 2023, the state’s CPI-UI has increased 2.6% since then. Nov. 2024 saw a 0.2% increase in CPI-UI, marking the third month in a row of increases at the same rate. The report cited a 0.4% rise  in October’s housing costs as the largest contributor to this 2.6% annual increase. Other indexes that increased in October were used vehicles, airline fares, medical care, and recreation. Indexes for apparel, communication, and household furnishings and operations all decreased.

As far as the geographic distribution of job growth, CTDOL reports that New Haven’s labor market area (LMA) saw the greatest increase in jobs this month, adding 1,400 jobs in total. The Hartford-West Hartford-East Hartford LMA saw an increase in 800 jobs. Three other LMAs saw decreases; the Bridgeport-Stamford-Norwalk LMA, Norwich-New London-Westerly LMA and the Waterbury LMA all saw small monthly declines of 100 jobs each.

The CTDOL releases its State of Connecticut Labor Situation reports each month, basing them upon data gathered from the U.S. Bureau of Labor Statistics’ household and business surveys. Its next report, for the month of December, will be released on Jan. 27, 2025.