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April 20, 2023

CT job growth slows in March, but private sector nears full post-pandemic recovery

Patrick Flaherty, director of research and information at Connecticut Department of Labor.
By Greg Bordonaro

Job growth in Connecticut slowed during the month of March, with most of the gains coming from the government and professional services industries, according to new data released by the state Department of Labor. 

Connecticut employers added 1,100 jobs in March, while the unemployment rate held steady at 4%, labor officials said. The U.S. unemployment rate is 3.5%.

The March results follow higher-than-expected jobs gains recorded in January and February, when employers in the state added nearly 14,000 jobs. 

The brisk hiring pace early in the year was a result of warm winter weather that had a particular impact on construction hiring, according to Patrick Flaherty, director DOL’s office of research. 

“Projects that normally shut down during the cold weather remained active throughout the season, which distorted the usual employment patterns we see in the spring,” Flaherty said. 

There were 1.69 million payroll jobs in the state in March, up 1.3% from a year earlier. 

Private sector employment increased by 500 (0.03%) positions in March, to 1.46 million. The state's private sector is now 99% recovered from the April 2020 COVID employment trough and needs to add less than 3,000 jobs to reach pre-pandemic levels, labor officials said. 

In March, the government supersector was up by 600 jobs (0.3%) to a level of 230,000. The public sector is now 71% recovered from the COVID April 2020 employment low point. 

Overall, the state has now recovered 96.7% (279,700) of the 289,100 jobs lost during the 2020 COVID lockdown period. 

Of note in the March report, Flaherty said, is that “consumer spending appears to be shifting from retail to services and entertainment. This is good news for restaurants; that sector employment is currently above pre-pandemic levels.”

Five of the ten major industry supersectors increased jobs in March 2023, while four declined and the information supersector was unchanged.

The industry supersectors that increased employment were:

  • Professional and Business Services +2,200, 1%, 227,300
  • Government +600, 0.3%, 230,000
  • Other Services +500, 0.8%, 62,900
  • Trade, Transportation & Utilities +100, 0.03%, 297,000
  • Educational and Health Services +100, 0.03%, 352,000


The four industry supersectors that recorded job declines in March 2023 were:

  • Construction and Mining -1,800, -2.9%, 60,400
  • Financial Activities -200, -0.2%, 115,000
  • Leisure and Hospitality -200, -0.1%, 154,000
  • Manufacturing -200, -0.1%, 158,500

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