Connecticut’s jobless rate jumped an astounding 4 ticks to 8.5 percent in July, even as employers added 5,100 jobs, an impossibly odd pairing of data.
Is it good news or bad news? The two figures are based on two different surveys, and the 5,100 jobs gained puts Connecticut on track for a decent year, with 9,700 added positions so far in 2012.
But it’s hard to put a happy face on an unemployment rate that has now leaped ahead of the national rate of 8.3 percent — especially since the state’s rate has now climbed for three straight months, from a post-recession low of 7.7 percent in April.
After the state Department of Labor reported the numbers, the agency took the extraordinary step of holding a conference call with research director Andy Condon to explain the basic fact — both things didn’t happen.
The issue is that the job-creation data is based on a survey of about 6,000 employers, while the unemployment rate is based on a larger survey of households.
It often happens that the household survey shows a rise in the number of people working, but also a rise in the number of people not working. In that case, the unemployment rate can rise even as companies hire, as people flood into the work force.
But in Thursday’s report, the number of people who say they’re working is down by a whopping 15,000, even as employers added more than 5,000 positions.
It’s possible that employers in other states, chiefly New York, have eliminated the jobs of Connecticut residents. It’s also possible that a large number of people who had been self-employed and thus not part of the workplace survey — are now reporting that they’re not working.
But there’s no evidence that those trends are happening, so the best explanation, Condon said, is simply a discrepancy in the surveys both of which are known to be way off on any given month.
“We’re left with little else to look at based on the differences between these two,” Condon said. “Sometimes you don’t get the right answer and you have to wait until you do get the right answer.”
Gov. Dannel P. Malloy issued a statement immediately, saying he believes the household survey is wrong.
“To buy into the household survey number you’d have to believe that Connecticut lost 503 jobs every day during the month of July, and there’s just no evidence to suggest that happened. Unemployment claims have drifted upward, but not at a rate that justifies the household survey number.”
Italics were Malloy’s. And he lost little time making the point that he’s working as hard as he can, as evidenced by the fact that his deal with Bridgewater Associates Wednesday promises to add 1,200 high-paying jobs.
Connecticut, like the rest of the nation, has seen job gains generally stagnate in 2012 after a promising 2011. The state’s unemployment rate fell from 8.9 percent to 8 percent in the last six months of 2011, then fell to 7.7 percent in March before rising again.
If you enjoyed this article, please consider sharing it!
27 Responses to CT Unemployment Rate Leaps To 8.5 Percent Even As Employers Add Jobs
- -- ADVERTISEMENT --
- -- ADVERTISEMENT --
This should come as no surprise to anyone. What should have been included in this story, so everyone who votes Democrat just because their parents did, is the following:
Of the 10 states with the lowest unemployment rates, 9 of them have Republicans in control of the Governor’s office and/or the state legislature.
Of the 10 states with the highest unemployment rates, 7 of them have Demorcrats in control of the Governor’s office and/or the state legislature.
But I am sure that is just a coincidence.
You are just wrong about that. Where is your source? But I’m sure it is just a coincidence that you didn’t leave a source.
Jon, why would there need to be a named source; as a matter of fact its called research. I would suggest that before you suggest someone is being untruthful, you should do some.
Jon: I’m sure it’s just a coincidence that you didn’t provide any sources to reflect YOUR position. This is a typical liberal ploy: simply deny someone’s statement without backing it up. Or accuse without basis, like Harry Reid does, and expect everyone else to jump to defend themselves.
The data come from the federal government’s BLS website. Look it up if you don’t beleieve it.
What WOULD be a surprise is if anyone is surprised at all by this news. Personally, my town recently had a re-evaluation that lowered the value on our home and property. The towns’ response was to increase the mill rate, resulting in HIGHER taxes than we have ever paid.
While the public sector lavishes in the glow of 20-year work histories and $5.00 prescription co-pays followed by lifetime pensions and medical benefits, the rest of us (those who actually PAY for these things), have to work until we’re 70 and retire without pensions and medical coverage.
Will this change the voting habits this election cycle? Unless those who feed off private sector taxes suddenly grow a conscience and a life ethic that includes personal responsibility and working for a living, and politicians decide to do what’s RIGHT for the citizens of this state and country and put a halt to the welfare society they have created and encouraged, we can expect more of the same.
Right about then, I expect to see pigs flying. Ain’t it grand to be king?
Term limits, making public employees live by the same rules as they impose on the rest of us, and holding politicians accountable for their actions, would be a greawt place to start.
Amen to you Kim- you have seen the light. the problem in CT is the parasites out number the hosts……..never a good scenario. And then then scare tacticts of the Dems…….”cuts to Seniors!, cuts to Education!!
My moto….never depend on anybody for your own self sustinence………
and don’t forget the ever-popular ‘but it’s for the children’
1,200 high paying jobs? Actually, it’s 1,000 and we have no idea what those jobs will be – janitors? landcaspers?
And Dan – perhaps you can ask the governor why he is taking money from the middle class, namely me, and giving it to a billionaire so he can build a opulent building. I don’t know about you, but that is Trickle Up Economics!
Thanks for the linkage JM. Facts are subborn things and the fact is that Bridgewater Associates is one of the most successful hedgefunds in the world. According to their own website, “In both 2010 and 2011, Bridgewater ranked as the largest and best-performing hedge fund manager in the world” (source: http://www.bwater.com/home/our-company/company.aspx).
Some would refer to Governor Malloy’s giving them $135 million in various forgivable loans and grants, corporate welfare. I may not be one of those. However, I do agree with Governor Malloy’s comments that “we are clearly charting a new course.” Although I’m certain that the “new course” he refers to and the one that I would refer to are at polar opposites.
This does not shock me considering the rest of the country is in the same boat and we are stuck with Governor Malloy!
don’t know where all these jobs are supposed to be, certainly not in the Norwich area. have been out of work 3 years and no one will even talk to me no matter where I go. know it’s because of my age but I want to work and so do many other senior citizens but not having any luck.
is Malloy back from another one of his trips out of the country? he sure spends taxpayers money very well with no return. hope you guys who elected him are happy and have lots more money he can take away from all of us
p hoffman, if you’ve been out of work for 3 years (which I don’t doubt), you are part of what is called the unreported unemployed. Statistics for this aren’t reported, however are no doubt significant. If Dan Haar, or anyone else in the “mainstream media” were seeking creditability they would at the very least acknowledge that our State and national unemployment figures don’t included the growing number of unreported unemployed.
This is actually good news everyone. The numbers are the result of a slowdown in blood sucking, public sector hiring and a slight increase in private sector hiring. I almost can’t believe it.
At phofmann – but I bet you are going to vote for Osten to replace Edith Prague. People always wonder why things get worse and they just vote for the same type of people!
MissBabs: are you implying that Edith Pragues’ long history in CT politics has HELPED? LMAO
You can get industry stats at the CT DOL site. Since January 2011 CT has added 5,600 jobs or 295 a month on average. The most significant trend during that time and over the last 22 years: Job growth in the non-government, non-profit Medical and Education Sector as many government functions are now filled by non-profits and quasi-government agencies. School reform and the move towards Charters are one example. Closing Bergen prison, moving state patients from state hosptals into residential group homes, etc.
Yes, rearranging deck chairs on the Titanic is the 20-year story.
CT job sectors getting the whack over the last 22 years and during the last 19 months
Five of the ten government tracked sectors acounted for the losses
*Construction
*Manufacturing
*Information Management
*Financial Services
*Transportation
5 were winners
*Education/Medical (tracked together)
*Leisure and Hospitality
*Government
*Other Services(various odds and ends)
*Professional and Business Services (consulting, accounting, payroll, waste services, etc)
government
Can’t be. Higher unemployment!!!…with all the new federal and state money? Let’s do ouerselves a favor…vote out the racist, socialist, communist community organizer and his radical followers before the USA becomes Europe. WAKE UP PEOPLE!!! Governement is the source of our problems.
Thanks to the state worker’s generous pension and health benefits, CT has the highest per-capita debt in the entire nation – roughly $42~$45k depending on the data source. And considering that roughly 1/2 of the state’s wage earners pay almost no state income tax (and many actually get a check (EITC) from the government…) the real debt burden is more like $85-90k per person. That comes down to almost $200k for families that actually do pay taxes.
How about exploring THAT statsistic, Dan?
And OBTW, what’s the ‘real’ unemployment/underemployment rate? I.e., people who have dropped out of the job market, lost their unemplyment benefits or are working part-time?
That statistic is probably closer to 15% if not higher.
I agree with your assessment MrLogical, many people I know and myself included, unemployment insurance ran out last month when it was a reported 8.1 percent, had it been what was reported today (8.5) an automatic extention would have cut in. Funny how those numbers work. If this included the people that are no longer counted, I fear the number would be much higher, around a truer 20% I fear.
I’ve been out of work longer than four years. I am lucky in that my spouse still is employed. I think if they want a true figure, they need to call all state residents and ask. Use an automated system, are you full-time, press one, part-time, press two, umemployed with benifits, press three, unemployed with no benifits, press four . Add it up and there’s the answer. I’m certain it is much higher than the gov’t tells us.
Of course, they never said that they had hundreds of layoffs from some of the larger companies that like to keep their names out of the paper so there really isn’t a “rise” in jobs!
If the unemployment rate in C.T. is that Low I would be surprised !! Gov’t fudges the figures for political reasons. People who have exhausted their unemployment benefits are no longer counted as unemployed, Why Not ???
The real unemployment rated for C.T.is probably 10-12%. Question-Who in their right mind would take seriously the Gov’ts numbers. It’s a numbers game which is easily manipulated !!!!!
the connecticut labor union parasites will kill their host they don’t care – they are going on strike for their 10th week of vacation pay !
and the politicians that buy their vote with benefits may have run out of other peoples money to play with
Malloy has been paying millions of dollars of taxpayer money per job to bolster the stats for fake job creation
According to the economic digest published by the state.
New Jersey (Christie) has added more jobs over the past year than all the New England Democrat) states combined.