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Connecticut unemployment rate dips to 5.1% as payrolls fall by 300 in August

State labor officials said government job losses offset private-sector gains in August, while the jobless rate ticked down a tenth of a point and private payrolls reached a new high.

Connecticut employers shed 300 payroll jobs in August while the state's unemployment rate fell to 5.1%, the Connecticut Department of Labor said Thursday.

The department said the overall decline was driven by losses in the government sector, and that private-sector employment reached a new high. The jobless rate dropped a tenth of a point, the agency said. July's gain was revised upward to 3,100 jobs from 2,800.

Labor Commissioner Danté Bartolomeo said the state's job growth so far in 2026 has outpaced the nation, with payrolls holding above 1.73 million jobs. "Employers continue to be cautious about hiring, that leaves job seekers in the market longer and dissuades experienced workers from changing jobs," she said.

Patrick Flaherty, the department's director of research, said August was "essentially flat" after five months of solid growth, and that the state appears to be returning to a post-pandemic pattern of strong early-year gains that taper toward the end of the year.

The department said Connecticut's job growth rate of 0.8% was double the national rate of 0.4%. Health care and construction added jobs, with construction at an 18-year high, while manufacturing lost jobs in August but remained above its level a year earlier. Private education jobs declined, which the agency said may reflect survey timing and the late Labor Day holiday.

The state's labor force fell by 4,100 in August. The department attributed the rise in the unemployment rate over the past year largely to new entrants into the job market rather than layoffs, and said retirements in an aging state and changes in federal immigration policy are also affecting labor force participation.

The September report is scheduled for release Oct. 19.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

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