Connecticut experienced a loss of 2,200 jobs in 2025, according to the December 2025 employment report. The Connecticut Business & Industry Association (CBIA) stated this represents a 0.1% decline in the state’s job market, contrasting with a 0.4% job increase nationally.

Chris DiPentima, president and CEO of CBIA, said these losses reinforce troubling trends affecting job growth in Connecticut. He noted the continued decline in the labor force as a significant concern, with almost 20,000 people, or 1%, leaving the workforce in 2025.

Key economic sectors, including manufacturing and financial activities, also reported job losses during 2025. DiPentima added that healthcare employment growth was only 0.1% in 2025, compared to 2.5% nationally. He said this indicates that demand for workers in the healthcare sector is outpacing the available supply.

The workforce shortage is also likely contributing to higher healthcare costs for employers, workers, and families across the state, DiPentima reported. These developments raise serious questions about the sustainability of Connecticut’s future economic growth, he stated.

DiPentima acknowledged the resilience of Connecticut employers and their employees in navigating uncertainty. However, he emphasized that innovation alone cannot sustain long-term growth if underlying workforce challenges remain unaddressed. The high costs of healthcare, energy, childcare, and housing continue to hinder the state’s ability to attract and retain workers, especially younger individuals as the aging workforce retires, he said.

With the 2026 legislative session approaching, DiPentima urged policymakers to prioritize making Connecticut a more affordable place to live and do business. He also called for strengthening workforce training and pipeline programs to connect residents with career opportunities. DiPentima concluded that if policymakers address these issues, Connecticut can achieve stronger, more sustainable economic growth.

This article includes AI-assisted reporting. Editors reviewed all content for accuracy.