U.S. Bureau of Labor Statistics data shows that June was the sixth consecutive month of job growth in the state of Connecticut. The state gained an estimated 1,700 jobs and the May numbers were revised upward to 2,400. The unemployment rate for Connecticut in June also fell to 4%.
“We see continued economic progress in Connecticut – labor force participation is up, employers are hiring, and opportunities are out there for job seekers,” Connecticut Labor Commissioner Dante Bartolomeo said. “Connecticut has among the highest labor force participation rates in the nation, critical for employers who are looking for workers.”
However, the department remains concerned about the impact of inflation and energy prices.
The Consumer Price Index showed that the energy index rose 7.5% over the month and contributed nearly half of the all-items increase, with the gasoline index rising 11.2% and the other major component indexes also rising. The food index rose 1% in June, as did the food-at-home index.
The index for all items minus food and energy, which are considered highly volatile, rose 0.7% in June after increasing 0.6% percent in the preceding two months.
While almost all major component indexes increased over the month, the largest contributors were the indexes for housing, used cars and trucks, medical care, motor vehicle insurance, and new vehicles. The indexes for motor vehicle repair, apparel, household furnishings and operations, and recreation also increased in June.
Both Fannie Mae and the Mortgage Bankers Association issued reports Thursday predicting that inflation would be anywhere between 5.7% and 6% by the end of the year. At the same time, both warned of a recession at the beginning of 2023 is likely.
The Federal Reserve Open Market Committee will meet last week and are expected to raise rates between 75 and 100 basis points to help tamp down inflation.
“We remain concerned about the impact inflation and energy prices have on Connecticut residents – these are national issues with a potentially broad impact on residents, employers, and the state’s financial services sector,” Bartolomeo said.