(Wethersfield, CT) – Connecticut Department of Labor (CTDOL) Commissioner Danté Bartolomeo and Director of Research Patrick J. Flaherty today released the January labor situation report and the 2025 annual benchmarked labor report. Overall, in 2025, Connecticut employers added 1,200 payroll jobs. In January 2026, employers added an estimated 5,300 jobs; December 2025 numbers were revised from a 500 decline to an increase of 400 jobs; and the state’s unemployment rate increased to 4.5%, up from the revised 4.3% in December.
Commissioner Bartolomeo said, “Employers added jobs in January; if these numbers hold, it will be a positive start to 2026. However, we expect some fluctuationsin this data and over the coming months as employers in Connecticut and across the U.S. face uncertainty with hiring, tariffs, and energy costs. Despite these challenges, Connecticut’s economy grew slightly last year. As long as the national economy doesn’t decline, we can expect slow and steady growth for 2026.”
Director Patrick Flaherty said, “After major changes during the pandemic, the state’s economy has rebalanced and stayed stable despite national uncertainties. Growth has been slow and steady, unemployment claims remain lower than they were pre-pandemic, and while it takes longer to find a job than it did during the post-pandemic boom, employers are hiring and reporting about 70,000 job openings in the state now.”
The January survey was conducted before the snow and very cold temperatures. Additionally, survey collection fell during some school vacations.The February labor situation, released on April 21, 2026,will likely show the effects of the severe winter weather in late January and early February.While Connecticut’s unemployment rate rose in January, there is no uptick in unemployment claims filing; CTDOL has around 30,000 weekly unemployment claims. The rise in the unemployment rate is likely due to new entrants to the job market who are looking for work. Until they get a job, these workers are identified as ‘unemployed’ when they enter the job market.
Revised data shows that state lost about 11,900 people from the labor force from January 2025 to January 2026.Federal immigration policy likely played a role in this decline—about 20% of Connecticut payroll jobs are held by people born outside the U.S. and Puerto Rico.
KEY TAKEAWAYS FROM THE REPORT
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Benchmark revisions showed Connecticut gained 1,200 jobs from December 2024 to December 2025.
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Top gainers in January include Transportation & Warehousing; Healthcare & Social Assistance; and Manufacturing.
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January declines includeEducation—likely related to survey timing and federal policy changes; Finance & Insurance; and Administrative & Support Services.
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The total number of jobs in Connecticut is at an all-time high of 1,722,300 but is expected to fluctuate in the coming months.
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Connecticut’s unemployment rate is 4.5%, 0.9% higher than January 2025.
VIDEO WITH DIRECTOR OF RESEARCH PATRICK J. FLAHERTY
#DOLDaily:Major Takeaways from the Benchmark and January Report
Monthly labor situation reports are based on employer surveys. Each month, CTDOL releases estimated jobs data that is based on employer surveys. The following month, data is updated to include surveys that came in after the deadline. Every year, the monthly survey data is compared to tax filings and the numbers undergo another revision for the benchmarked report.
The benchmark and January reports are generally released in March but were delayed by the fall 2025 federal government shutdown. The February labor situation will be released Tuesday, April 21, 2026.
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