State unemployment rate falls to 5.3 percent

The state’s unemployment rate dropped slightly in August, falling from 5.4 to 5.3 percent as Connecticut added 3,200 non-farm jobs last month, the Department of Labor reported Thursday.

August marks the fourth consecutive month Connecticut has gained jobs, and the state now has added 33,200 jobs over the year. The state has recovered just over 88 percent of the 119,000 jobs it lost between March 2008 and February 2010.

Average hourly earnings stood at $29.24 in August, up $1.26, or 4.5 percent, from one year ago.

The 5.3 percent unemployment rate is the lowest since May 2008.

“Connecticut’s estimated nonfarm employment growth pace and unemployment rates have come closer in line with national averages this summer,” said Andy Condon, director of the labor department’s Office of Research.  “In August, earlier school openings and the later Labor Day holiday seemed to influence industry employment, earnings, and hours worked.”

“We’ve undoubtedly seen a strong summer and a strong year – this is the best August we’ve seen in a decade,” said Gov. Dannel P. Malloy. “There is no doubt the needle is moving in the right direction.  Unemployment is hovering around the national average, with thousands of jobs being created each month.  It’s good news and it demonstrates that our efforts over the past several years are truly paying dividends.”

Five of the state’s industry super-sectors gained jobs in August, topped by education and health services, which added 2,500 positions. Gains also were recorded in: government; trade, transportation and utilities; manufacturing; and other services.

Four industry super-sectors lost jobs in August, led by leisure and hospitality, which lost 1,000 positions. Other super-sectors that experienced losses were: financial activities; construction and mining; professional and business services; and information.

Employment in the information super-sector was unchanged last month.

“The August jobs report shows continued improvement and moderate growth,” said Peter Gioia, vice president and chief economist for the Connecticut Business and Industry Association.

But Gioia noted that the job losses in financial activities and construction are significant, given that these super-sectors tend to involve higher wage jobs. “We’re not there yet,” said Gioia of the economic recovery.

Two of the four major labor market areas gained jobs in August, with New Haven adding 1,600 and the Bridgeport-Stamford-Norwalk market adding 100. The Hartford-West Hartford-East Hartford and Norwich-New London-Westerly markets lost 3,500 and 300 jobs, respectively, during August.

Connecticut and U.S. unemployment rates over time

Connecticut Department of Labor

Connecticut and U.S. unemployment rates over time

Comments

comments