Unemployment in Connecticut climbs again – back to 9 percent.

11 Comments

The latest data from the Connecticut Department of Labor reveals that the state is making little progress when it comes to re-bounding from the Great Recession.

According to the more conservative unemployment measurement, 171,100 Connecticut residents are presently unemployed.  However, using the federal government’s U-6 rate, which measures both the unemployed and those who are in a part-time job but actively looking for full-time employment, more than 15% of Connecticut’s workforce is without the jobs they need.

In addition, of the 117,500 jobs lost since the “recessionary downturn” began, Connecticut has only recovered about 30,000 jobs (25% of all jobs lost).

Despite the claim that the recovery began in February 2010, Connecticut’s government, financial, construction and manufacturing sectors have yet to even begin regaining jobs.

Still on the downside, Connecticut’s government sector remains down 11,100 jobs, while the number in the financial sector is down 4,200 positions, construction and mining is down 1,200 jobs and manufacturing is down 800 jobs.

Since much of the federal Stimulus Funds were not used to supplement government activity, but instead were used to substitute for existing spending, elected officials have failed to help those who lost their jobs in two of the sectors that leaders could actually have had an impact over – government and construction.

Since Governor Malloy took office, government positions have been further eliminated and despite his predilection for the Financial Sector, his First Five Corporate Welfare Program has yet to have any impact.  Although considering those favored business need only create 200 jobs, and have five to ten years to do so, whatever impact the corporate welfare program does have will be limited in nature.

A related problem for Connecticut businesses is that as a result of the lengthy recession, the State of Connecticut has already borrowed more than $635 million from the Federal Government to help pay unemployment benefits.  Borrowing was necessary because the amount of funds collected from employee unemployment taxes wasn’t enough to cover the costs associated with payments to the unemployed.  Since these funds will need to be paid back, Connecticut businesses will be facing high unemployment taxes on an ongoing basis.

  • LaurieLima

    Are you sure Rell is not still in Office somewhere…the plummet and corporate support (to be nice) feels the same.

    • JMC

      Rell was a decent and ethical human being. She could do almost nothing without the Blue legislature’s approval. Malloy on the other hand is viral. These corporate wellfare giveaways are done to create a bogus impression that CT is “Business Friendly”. But real, genuine small businesses know better.

      • LaurieLima

        I have never met her but I do know people who have…they said that of her too. Also said she overall was a nice lady. What I do know is I keep hearing “things are going to get better if you vote for me” but they don’t…I am fifty two and still waiting. I am thankful my daughters and I are healthy, educated and employed….not much to complain about here.

        • JMC

          As Lieut. Gov. Rell travelled all over the State promoting worthy causes. She did this, I believe, without any expectation of higher office or huge publicity. She appeared at a Drug Free event for school students to which I took my High School students. She was well informed. We were impressed.

      • LaurieLima

        I was a small business owner for almost thirty years…got caught in the economic downturn and corruption in our State. Soooo Many many mom and pops have suffered but to have suffered first hand gives a person the proper information to retreat, protect and defend. It’s a jungle out there…for our kids too. CT is not business friendly it’s “political” warfare…

  • jschmidt2

    We don’t need prosperity in CT. We’ve got Malloy and government handouts. He even gives to big corporations for heliports (Bridgewater hedge funds), and to move to another location in CT(wellpoint) or to not reduce staffing below a certain point (UBS), or to increase workforce in CT even if they include the contracted landscaper (Cigna). And to fund all of this the corporate and individual taxpayers gladly pay more in taxes so these companies don’t have to access their meager millions and billions. BTW- just how much has the government size been reduced under Malloy? I don;t think much. Spending 900 million more when he had a deficit already for the busway and other items was not smart. I’m sure Malloy has a resume in the Obama admin. His penchant for spending money there would be welcome

    • JMC

      In national news, the Obama administration has just announced that the US will spend $6 Billion to promote Clean Energy – in Asia.

  • Wilton Businessman

    We can point fingers at the usual corporate bad boys and say it’s their fault. Or we can point to a handful of people that “aren’t paying their fair share”. Those are all the easy answers.

    But when one looks at the underlying structural problems, one has to admit that Connecticut is not a great place to start a business:

    1. The cost of labor is expensive.

    2. The cost of housing is expensive.

    3. The taxes are high.

    4. The cost of energy is high.

    5. The interstate infrastructure is poor on it’s best day.

    6. The urban areas (where young people want to live) are crime ridden.

    7. There is no public transportation to speak of unless you want to go to New York.

    8. There is a real skill gap from what companies want to hire to what is being turned out in the public school and community college system. (Note, this is a problem all across the nation, not just in CT)

    Malloy, as well as President Obama, like to focus on the big boys; Cigna, Apple, GE, etc. Yes, the big boys pay taxes and contribute to campaigns. But how is Malloy going to help the next Jim Muller (http://www.mullerchokes.com/) go from 2 employees to 10? We can’t concentrate all our resources into one industry; Finance, Insurance, Bio-Tech. The support has to go across all industries so that when the next Pfizer decides to pull out, it doesn’t devastate the area.

    Eh, WTF do I know? I’m only a Fairfield County maker.

    • Linda174

      /taker

  • http://twitter.com/wwkayaker7 steve o

    Malloy is just running off a mini Obama blueprint for jobs and fiscal development. The people of Connecticut voted for Malloy and Obama so it goes to reason that Our people want high unemployment and massive deficits. If you apply the Malloy/Obama scheme to your own household, you will be bankrupt very quickly, but as long as people get their free Obama phones and earned income tax credits and other wealth redistribution programs, the masses will show up on election day to vote to take other people’s property.

  • Jim

    With unemployment at 9.0% in CT as of October 2012, please sign the Petition at Whitehouse.gov to Extend Emergency Unemployment Benefits for those Americans that are out of work. If an extension is not agreed upon, those on Extended benefits will lose those benefits on 12/29/2012. http://wh.gov/nT1X