Connecticut added 7,900 jobs in June, according to the Connecticut Labor Department. That’s the good news.
The bad news is that its job losses in May were revised from 1,400 to 4,000.
“Connecticut’s large swing in job growth from May to June mirrored a similar pattern nationally,” Andy Condon, director of the Office of Research, said Thursday. “While we can’t pinpoint an exact cause, it seems likely to be due to a change in seasonal pattern rather than an actual swing in labor markets.”
It means that Connecticut is still about 20,000 jobs from attaining full job recovery.
Connecticut Business and Industry Association Economist Peter Gioia said the June jobs report is generally good news, but “it also points to some of the problems with the volatility of the numbers we’ve been seeing.”
Connecticut may have added 7,900 jobs in June, but it lost 4,000 jobs in May.
“So you balance the two months together, and you’re looking at about 2,000 jobs per month gained,” Gioia said.
Don Klepper-Smith, an economist with DataCore Partners, said the good news is that year-to-date, Connecticut is adding jobs.
However, the bad news, according to Klepper-Smith, is that the Connecticut economy is clearly facing major obstacles to growth and weakness is readily apparent in many of the real-time economic metrics.
“Tax revenues are dropping; we’re seeing an average of 500 people leave Connecticut each week on a net basis due to outmigration; the number of unemployed individuals is up by 7,100 over the last 12 months given new June data; confidence in state government is declining as is indicated by recent polls; and business confidence across the state is being challenged like never before,” Klepper-Smith said. “Not a recipe for a ‘feel good’ economy.”
On the other hand, in June, seven out of of 10 supersectors added jobs.
“Probably the most encouraging was that financial services, which has been lagging, added 2,200 net new jobs,” Gioia said.
Education and health services also made considerable gains last month, as did professional services.
What was troubling for Gioia is the sectors that are losing jobs.
“We saw declines of 800 jobs in manufacturing and construction,” Gioia said. “Two areas which are important to the state and should be up.”
Meanwhile, the unemployment rate for Connecticut in June was estimated at 5.8 percent, which is up one-tenth of a percent from May. The number of unemployed residents in June increased by 2,300.