(Wethersfield, CT) – Connecticut Department of Labor (CTDOL) Commissioner Danté Bartolomeo released the August labor situation report today showing a slight drop in the unemployment rate to 5.1%. Payroll jobs were down 300 due to government sector declines; however, private sector job numbers hit a new high. July jobs were revised from 2,800 jobs added to 3,100 jobs added.
“So far in 2026, Connecticut’s job growth outpaces the nation with employers across multiple industry sectors adding jobs and sustaining payrolls above 1.73 million jobs,” said Commissioner Bartolomeo. “Employers continue to be cautious about hiring, that leaves job seekers in the market longer and dissuades experienced workers from changing jobs. Despite national and international uncertainties, the state’s economy is steady and stable.”
“After five consecutive months of solid job growth, August was essentially flat and seems to put Connecticut back in the post-pandemic pattern of strong early year growth that tapers by end of year,” said CTDOL Director of Research Patrick Flaherty. “As long as the national economy avoids declines, we project 2026 will be a slow, steady job growth year in Connecticut.”
KEY TAKEAWAYS FROM THE REPORT
- Connecticut’s unemployment rate dropped 0.1% to 5.1%. The rise in the unemployment rate over the past year is largely due to new entrants into the job market, not layoffs. Unemployment claims remain consistent with this time last year.
- Connecticut’s 0.8% job growth rate outpaced the national rate of 0.4%.
- Healthcare and construction added jobs; construction is at an 18-year high.
- Manufacturing lost jobs in August but remains above where it was last year at this time.
- Private education jobs declined, possibly due to survey timing and the late Labor Day.
- Connecticut’s labor force declined by 4,100 in August, however, the state’s overall payroll employment remains near an all-time high. CTDOL notes that Connecticut is an aging state with a high number of retirements, additionally, changes in federal immigration policy are widely reported to impact labor force participation.
VIDEO WITH DIRECTOR FLAHERTY
#DOLDaily: Major Takeaways from the August report
The federal Jobs Openings and Labor Turnover Survey (JOLTS) by state is now produced annually rather than monthly. Help Wanted Online shows more than 80,000 jobs posted in the state; although employers may not be immediately hiring for all posted positions. Additionally, CTDOL notes that survey response rates remain lower than before the pandemic.
The September 2026 labor situation report will be released on October 19, 2026.
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For Immediate Release: September 17, 2026