Connecticut Unemployment Stays Over U.S. Average, Public Job Losses to Blame

recession impact

Job losses in the public sector are continuing to haunt American workers employed in government jobs in Connecticut. Through the month of July, 600 jobs were lost in the state, primarily because of layoffs in the government sector.

In July, the state’s private sector added 300 jobs. However, 900 jobs were slashed in the public sector, which includes positions in the state and local governments.

In fact, so far this year, the government sector job cuts have surpassed job creations by any private sector organization within Connecticut. Up until now, the state has lost more than 3,000 government jobs in 2017.

The job losses in the government sector follow the state’s fiscal budget crisis, which has forced government institutions to cut back on costs amid shrinking state funding.


The state-run summer job program for Connecticut teens also faced a setback through June and July following the state’s failure to approve a budget in time.

Worse yet, Connecticut’s fiscal problems became glaringly obvious after the state capital, Hartford, hired lawyers to brace up for a Detroit-like bankruptcy.

In the midst of these developments, Connecticut’s unemployment rate, which currently hovers over five percent, remains well above the average unemployment rate in the country. The U.S. unemployment rate is recorded at 4.3%.

Industry-wise, the leisure and hospitality industries witnessed the most job cuts in July, where 2,000 jobs were lost, accounting for a 1.2% drop. The decline can, however, partly be attributed to a seasonal adjustment after the industries laid off workers hired in June to meet demand during the peak summer tourism season. The two industries had added the most jobs in the state in the prior month of June.

Connecticut is still struggling to recoup the jobs lost during the Great Recession of 2008-2009. So far, the state has managed to recover roughly 82% of the jobs lost during the recession.

The state has added about 119,100 jobs in the eight years following the recession, but needs to add another 21,100 jobs to be able to claim true post-recession employment expansion. It is a feat that appears impossible to achieve by end of this year.



Labor Market In Summer Doldrums, As Unemployment Remains at 5 Percent in July,” Hartford Courant, August 17, 2017.

Connecticut loses 600 jobs in July,” News Times, August 17, 2017.