03/08/2024
CT Dept. Of Labor: Annual Benchmark Report Shows Solid Job Growth and Sustained Economic Progress
(Wethersfield, CT) – Today, Connecticut Department of Labor (CTDOL) Commissioner Danté Bartolomeo and CTDOL Research Director Patrick Flaherty released the annual benchmark report for 2023 and the January 2024 monthly labor data. Connecticut is showing sustained job growth and is now at a 16-year high with 1.70 million payroll jobs. Private sector growth has likewise surpassed recorded data at 1.47 million jobs. The unemployment rate increased from a revised estimate of 4.2% to 4.4% due to an expansion in the labor force. In January 2024, employers added an estimated 7,400 jobs and currently have approximately 94,000 jobs available in the state.
Commissioner Bartolomeo said, “Today’s report is further evidence of the strong approach Connecticut 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. 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.”
CTDOL Director of Research Patrick Flaherty said, “While there are always monthly fluctuations in the numbers, overall, 2023 was a solid year for the economy. Employers posted seven months of growth and 18,400 jobs, making 2022 and 2023 the strongest two-year period in 25 years. 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.”
TOPLINE POINTS FROM THE REPORT:
- There are 1.70 million payroll jobs in Connecticut, 1.47 million are in the private sector. The private sector is 102.9% recovered from the pandemic. Total jobs are 101.6% recovered.
- Connecticut employers added a total of 18,400 jobs in 2023 after gaining 28,500 jobs in 2022. From January to June 2023, employers added an average of 4,000 jobs per month. From July to December, jobs declined by an average of 1,000 per month; this six-month decline was reversed with the addition of an estimated 7,400 jobs in January 2024.
- The unemployment rate rose to 4.4%; still relatively low—most economists consider 4% full employment. Connecticut had an unsustainably low unemployment rate below 4% for the majority of 2023. The unemployment rate increase indicates that more workers are entering the job market, not that workers are losing their jobs.
- Six of the ten major industry supersectors showed employment gains in January 2024. Connecticut appears to be back to a new normal with education and health sectors experiencing high growth. Pre-pandemic, retail was losing jobs as warehousing was gaining jobs; that trend continues.
- The government sector gained 800 jobs in January 2024 and is up 3,600 since January 2023.
Connecticut currently has approximately 33,000 unemployment filers. The state’s labor force participation rate is 64.4%; the national average of 62.5%.
While the monthly labor situation reports are based on employer surveys, the annual benchmark report is based on employer data and gives a fuller and more accurate picture of payroll employment, job numbers, and industry health over the past year. Monthly labor situation reports are revised the following month as some employer information is submitted after the deadline for inclusion.
The regular February labor report will be issued on March 21, 2023.
#DOLDaily videos with economist Patrick Flaherty:
#DOLDaily: Benchmark Revisions & January Gains
#DOLDaily: Major Takeaways from the January Report
#DOLDaily: When is higher unemployment a good sign?
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For Immediate Release: March 8, 2023
*This press release was updated on 3/8/24 to reflect the correct number of private sector jobs to 1.47 million. Due to a typo, the original number indicated 1.46 million in the first paragraph. The number appeared correctly in the bullet points.
Media Contact:
CTDOL Communications Unit
200 Folly Brook Boulevard, Wethersfield, CT 06109-1114
Email: CTDOL.Communications@ct.gov | https://www.ct.gov/dol