Are tariffs and inflation starting to affect CT? Labor numbers say: maybe
The unemployment rate in Connecticut over time.
The impacts of tariffs and inflation at the national level may be starting to hit Connecticut, based on the state Department of Labor’s February jobs report, released Thursday.
Connecticut employers shed 1,200 jobs in February, according to the report, and the state’s unemployment rate rose one-tenth of a percentage point to 3.4%, up from 3.2% at the end of 2024.
Initially, the DOL said Connecticut gained 2,300 jobs in January. However, the DOL on Thursday revised January’s job gain down to 1,500 – 34.8% less than originally reported.
“This was a mixed jobs report with declines moderated by our strong position going into 2025,” DOL Commissioner Danté Bartolomeo said. “One month of job losses isn’t unusual — particularly when employers continue to advertise for positions — however, national issues including tariffs and inflation remain a cause for concern.”
She said it’s too soon to know if the impacts of tariffs and inflation are showing up in Connecticut, or if the job loss reflects “normal ups and downs of the market.”
“Connecticut’s economy remains stable; we’ll have more data points next month,” Bartolomeo said.
In February, two of the 10 major industry supersectors increased jobs, while five declined. The other three supersectors – government, financial activities and other services – were unchanged.
The top industry gainer was health care and social assistance, which added 600 jobs in February, according to the DOL. The manufacturing industry saw the largest decline, losing 600 jobs. Also, federal government jobs declined by 200.
The two industry supersectors that increased employment in February were:
- Educational and health services: +900 0.2% 372,800
- Professional and business services: +300 0.1% 223,000
The five industry supersectors that lost jobs in February were:
- Leisure and hospitality: -700 -0.4% 155,600
- Manufacturing: -600 -0.4% 154,600
- Trade, transportation and utilities: -600 -0.2% 299,500
- Construction and mining: -400 -0.6% 62,400
- Information: -100 -0.3% 30,400
The state’s labor force participation rate in February remained unchanged at 65%, most likely due to retirements, the DOL said. The national labor force participation rate was 62.4%.
Currently, Connecticut has just under 32,000 weekly unemployment filers and nearly 80,000 open jobs, the DOL said.
The state also recorded a sharp increase in job openings during the month of January to 92,000.
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