Connecticut’s unemployment rate rose 0.2% to 4.2% in December and this was after gaining 2,100 jobs in November, according to the Connecticut Department of Labor.
Further, payroll jobs declined by an estimated 500 in December, according to Labor Commissioner Danté Bartolomeo, who released the December Labor Situation report.
“There was considerable volatility in 2025 with national issues playing a role in dampening Connecticut’s job growth. Over the past year, Connecticut’s workforce declined; that makes it harder for employers to hire and it reduces retail and services spending,” Bartolomeo said, in a statement. “Employers have around 70,000 open jobs in the state; CTDOL encourages job seekers to contact their local American Job Center for job search assistance.”
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The labor department reported that the state has 1,935,700 people in the labor force and that, in the past six months, Connecticut’s labor force dropped by 20,000 workers, but “average weekly earnings were up 3.0% over the year, essentially offsetting inflation.”
The department’s director of research, Patrick Flaherty said, “Connecticut’s economy has shown resilience through some ups and downs this year.
“As we’ve said in the past, the state’s economy will follow national trends, so we remain watchful of inflation, the impact of tariffs, and overall hiring,” Flaherty said, also in a statement. “Looking ahead to 2026, we expect a modest growth year in Connecticut—as long as the U.S. economy avoids an economic downturn.”
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Flaherty said in a video shared with the numbers that “2025 was an up and down year,” for Connecticut, with an “overall trend toward slower growth.” He also said there are “changing shopping habits” that are continuing to impact employment.
Per the labor department:
Job growth over the year—December 2024 to December 2025—has been volatile. Connecticut added jobs in six of 12 months; however, state employers lost 2,200 jobs overall for the year.
Top gainers in 2025: Healthcare and Social Assistance, Professional and Scientific Services, and Local Government.
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Retail Trade, Accommodation & Food Services, and Private Education lost the most jobs in 2025.
Connecticut’s labor force participation rate was unchanged at 64.0% compared to the national rate of 62.4%
Continued unemployment claims are around 35,000, slightly higher than last year at this time when they were around 32,000.
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The department has previously noted that federal immigration “policies may impact these numbers. Connecticut employers rely on an immigrant workforce to offset retirements in Connecticut’s aging workforce and the state’s low birthrate; 23% of Connecticut workers are born outside of the U.S.”
The CTDOL noted that federal Bureau of Labor Statistics has not yet scheduled further Labor Situation releases.