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March 10, 2023

CT added 8,700 jobs in Jan.; unemployment rate drops to 3.9%

Spartan Aerospace manager Wayne Thibodeau shows apprentice Christializ Reyes a machine-tool component used for crafting finely detailed metal parts.
By Andrew Larson

Connecticut’s labor market had a strong month in January, posting 8,700 new jobs, which shrunk the unemployment rate to 3.9%, according to the Connecticut Department of Labor.

The DOL also announced Friday that Connecticut added 35,300 jobs in 2022. 

The latest DOL data shows that the private sector has regained 96.9% of the jobs lost during the pandemic shutdown, from March to April 2020. The public sector continues to lag behind, recovering 68% of its jobs that were lost. Overall, the state has now recovered 94.6% (273,400) of the 289,100 jobs lost during the 2020 COVID lockdowns, DOL officials said.

The state’s unemployment rate is down from 4.8% a year ago.

However, the labor pool has shrunk by 25,000 workers compared to before the pandemic. Connecticut businesses have roughly 100,000 job vacancies.

The DOL’s economic research director, Patrick Flaherty, said that companies are hampered by the smaller labor force. 

“The state’s manufacturing industry will require a skilled workforce to replace thousands of retiring workers and fill new positions,” Flahery said. “Connecticut’s workforce development initiatives are critical to continued job growth and expansion.”

In January, seven private industry supersectors generated employment gains, while three declined.

The sectors that gained jobs in Connecticut included:

  • Professional and Business Services +3,700, 1.7%, 222,300
  • Educational and Health Services +2,300, 0.7%, 349,900
  • Construction and Mining +1,400, 2.3%, 62,300
  • Trade, Transportation & Utilities +1,300, 0.4%, 297,000
  • Leisure and Hospitality +700, 0.5%, 153,700
  • Other Services +500, 0.8%, 62,100
  • Government +300, 0.1%, 229,200


The sectors that lost jobs included: 

  • Financial Activities -1,000, -0.9%, 115,600
  • Manufacturing -300, -0.2%, 158,800
  • Information -200, -0.6%, 30,900

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