Payroll Growth Masks Connecticut's Labor Market Woes

Connecticut's labor market is sending mixed signals, with nonfarm payrolls increasing by 9,300 jobs (0.5%) in the 12 months through June 2026, but the total number of employed Connecticut residents falling by 69,500, or 3.7%.

The unemployment rate climbed to 5.2%, the largest one-year increase of any state, and the labor force shrank by 46,800.

Some of this discrepancy can be attributed to differences in how payroll numbers and resident employment are counted. Payroll surveys count jobs rather than people, so someone working two jobs appears twice in the payroll figures but only once in resident employment.

However, national data suggest that multiple jobholding is not a significant factor, with the share of employed people holding multiple jobs standing at 5.3%, and remaining around that level since 2023.