Connecticut job cuts reached 6,600 in October as mostly seasonal jobs were shed.
The jobless rate in the state has remained unchanged from October 2016 to September 2017.
Adding this latest edition of Connecticut job cuts, the state has lost around 12,200 jobs since June. While the unemployment rate is shrinking, it is not necessarily a function of people finding more jobs, but rather caused by a shrinking labor force and fewer people actively looking for work, according to Pete Gioia, an economist with the Connecticut Business & Industry Association. Connecticut’s labor force declined by 7,900 in September.
“Not only did we lose 6,600 jobs in October, the labor force shrank again,” Gioia said in a statement. “We hear from companies daily, particularly manufacturers, that they can’t find qualified workers and until we fix this problem, we may continue to see disappointing or subpar reports. The lack of job growth highlights our workforce development concerns; we’re not keeping pace with the number of retirements.”
The issues of a shrinking labor force are hardly unique to Connecticut alone. While job cuts are worse in some sectors than others across the U.S., one thing that is near universal is that many jobs are being created in lower-pay industries, like restaurant service. Meanwhile, people may be finding employment in those industries, but that hardly represents a middle-class wage in most communities.
In addition, there are also many people who are simply dropping out of the labor force, no longer seeking active employment. This has been growing for years and represents another challenge for the U.S. economy moving into 2018. How the state of Connecticut specifically handles the dwindling number of workers on top of the job cuts will be an issue that state officials have struggled with across the country.
“Connecticut economy loses 6,600 jobs in October,” The Register Citizen, November 16, 2017.
“CT shed 6,600 jobs in Oct.,” Hartford-Business, November 16, 2017.