Total nonfarm employment in the state has reached its highest levels since March 2008.
Connecticut employers added 6,300 jobs in June, pushing total nonfarm employment in the state to its highest level since March 2008, according to a report released Wednesday by the Connecticut Department of Labor.
The state’s unemployment rate in June held steady at 3.8%, remaining below the national rate of 4.1%.
The June gains followed a downward revision to May’s job numbers, which now show a loss of 4,200 positions, largely due to the timing of a manufacturing strike. DOL officials said the state’s labor market remains strong, though they cautioned that shifting federal policies could pose challenges.
“June was a strong growth month in Connecticut with employers adding jobs and other economic indicators in solid territory; this is good news in the short term,” said Labor Commissioner Danté Bartolomeo.
“But there is some complication introduced by federal policy shifts,” she added, citing potential risks to the state’s core industries — healthcare, pharmaceuticals, warehousing, and transportation — from new tariffs and changes to Medicaid.
Patrick Flaherty, DOL’s director of research, noted that while job growth in 2025 has been more modest compared to 2024, the labor market remains stable.
“The bottom line is that June 2025 job numbers are higher than June 2024, but federal policy changes put us in uncharted territory,” Flaherty said.
Other findings from the report include:
Total nonfarm employment in June hit 1,718,700.
The state’s labor force shrank by 3,700 in June. The DOL said federal immigration policy could be contributing to the decline, particularly in sectors like construction.
Connecticut’s labor force participation rate stands at 64.8%, above the national average of 62.6%.
The manufacturing industry currently has about 5,000 job openings, with strength concentrated in southeastern Connecticut. The sector continues to face headwinds from retirements and hiring difficulties.
Retail trade lost 1,100 jobs in June and continues a long-term downward trend.
Federal government employment in Connecticut declined by 100 positions in June and is down 400 year-over-year, in line with past patterns.
Unemployment insurance claims remain low, with about 31,000 current filers.
Chris DiPentima, president and CEO of the Connecticut Business & Industry Association, said that during the first six months of the year, the state “gained a modest 2,600 jobs, spurred in part by gains in the public sector and healthcare industry.”
“It’s encouraging to see June’s preliminary 6,300 job gain — reversing last month’s revised 4,200 losses,” DiPentima said. “… However, the wild swings that we’ve seen in the job market highlight the volatility in Connecticut’s economy.”
He also noted that Connecticut’s economy contracted during the first quarter of this year for the first time in over three years “amid tariff concerns, slower consumer spending, and labor market struggles.”
Overall, Connecticut employers are still battling a labor shortage, with over 80,000 open positions in the state, including an estimated 7,000 open manufacturing positions, DiPentima said.