LABORING ON  

Economists continue to debate whether or not the nation has slipped into recession, but here in Connecticut, the most ominous sign of a slowing economy already has appeared—lost jobs. The State Labor Department data for March reveals a decrease of 3,400 jobs in Connecticut since February, and that's not all.

"Connecticut's economic woes continued for the third consecutive month," said State Labor Economist John Tirinzonie, "posting its first quarterly job loss since 2003."

The report indicates the only economic sector actually gaining jobs in March was education and health services, which added about 200 positions. Jobs in government sank, so did positions in the financial and information sectors.

While the housing crisis continues in Connecticut and nationwide, March labor data shows the construction industry in the state notched a slight gain in jobs after posting a 1,200 job loss in February. Overall the construction job picture in Connecticut is flat, while it has gone down at least 5% nationwide.

For years, economists have bemoaned the decline of manufacturing in Connecticut as companies moved to states with better tax climates or sent work "offshore" to places such as China. However, despite a slight drop in jobs last month, along with other sectors, manufacturing in Connecticut has been relatively stable.

Tirinzonie said the dip of 200 jobs in manufacturing in March may not be due to declining orders but companies inability to fill many job openings. Connecticut is famous for a skilled work force in manufacturing, but those experienced employees are retiring and filling their slots often proves difficult.

"Many times young people do not want to get into the manufacturing sector," said Tirinzonie, "and it's unfortunate because there are many skilled jobs in manufacturing that pay very, very well."

Overall the job loss figures translate into an unemployment rate for Connecticut that now stands at 5.3%, slightly above the national unemployment rate. One year ago in Connecticut, the jobless rate was just 4.4%.

Unemployment problems vary widely around Connecticut even though it is a small state. The biggest problem is in the Waterbury area where the jobless rate is 7.6%, while the nearby Danbury region has the lowest jobless rate at 4.4%.

There is one consolation for workers—wages are up over last year. In March 2007, the average weekly earnings rate in Connecticut was $859, now it stands at $900. Of course, that gain is probably being eaten up by higher costs for everything from gasoline to food.

"We've lost jobs in Connecticut for three straight months after job gains last year," said State Senate Minority Leader John McKinney (R-Fairfield). "That is a sign that our economy is in trouble and that Connecticut is starting to feel the effects of a national economic downturn or recession."

However, there is one piece of good news in the State Labor Department report. Though jobs are waning, Tirinzonie does not believe the negative trend will stick. "While we are not likely to see any noticeable improvement in the foreseeable future, odds are favorable that 2009 may bring us better news," he predicted.

Tirinzonie said unlike some past recessions, this time government is trying to be proactive, using various stimulus tactics that could lessen the pain. Also, this is a presidential election year. In January, John McCain, Barack Obama, or Hillary Clinton will take over the White House. To make his or her mark, it is likely the new president will be more focused on bringing the economy out of the doldrums than President George Bush in his final days in office.
 

Posted 4/21/08

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