Job growth surged at the end of 2024, with Connecticut employers adding 5,100 jobs in December amid strong gains in the trade, transportation, and utilities and education and health sectors.

The state Department of Labor’s monthly employment report also revised November’s initially reported 300-job gain to an increase of 1,500 positions.

That brought preliminary 12-month job growth to 20,100 (1.2%), third best of the New England states and just behind the national rate of 1.4%.

Private sector employment grew 1.4% in 2024 and now stands at an all-time high of 1,482,400.

The complete picture for 2024 will be known in March, when DOL releases the annual employment benchmark report, which often features revisions.

New Hampshire led the region with 2% year-over-year growth—eighth best in the country—followed by Vermont (1.6%), Connecticut, Rhode Island (1%), Massachusetts (0.7%), and Maine (0.3%).

Regional Growth

CBIA president and CEO called the December report “one of the strongest employment reports that we’ve seen in quite some time.”

“While we still have work to do—Connecticut has 75,000 open jobs—there is reason for cautious optimism as we begin 2025.”

Connecticut’s labor force also grew in December, adding 9,100 people (0.5%) and bringing 12-month gains to 13,000 (0.7%).

DiPentima called the latest labor force numbers “encouraging,” noting that the population of those working and actively looking for work remains 1% below pre-pandemic levels.

“Job openings are 7% higher than before COVID hit in March 2020, with 1.3 openings for every unemployed person,” he said.

“We need people to fill those jobs and that means making Connecticut a more affordable place to live and work.”

Average private sector hourly earnings rose 5.6% to $38.98 over the 12 months through December, while weekly earnings increased 4.8% to $1,244.24.

Labor Force

New Hampshire (-0.2%) is the only other New England state with a smaller post-pandemic labor force.

At 2.3%, Rhode Island has the region’s strongest labor force growth, followed by Vermont (1.5%), Massachusetts (1.5%), Maine (1.4%), New Hampshire, and Connecticut.

The U.S. labor force has grown 2.5% since February 2020.

Unemployment remained at a near-record low 3% in December, sixth lowest in the country—although that largely reflects the state’s labor force declines.

DiPentima emphasized the connection between the labor shortage and Connecticut’s high cost of living, with energy, housing, childcare, and taxes among the key factors impacting affordability.

“State policymakers must focus on solutions that will drive and sustain job growth for the long term, with opportunities for all residents,” he said.

“CBIA’s ReimagineCT policy solutions prioritize affordability and creating opportunities for rewarding careers, particularly for women, people from underserved communities, and the state’s disconnected youth.”

Industry Sectors, Labor Markets

Eight of Connecticut’s 10 major industry sectors posted employment gains in December, led by trade, transportation, and utilities, which added 1,900 jobs (0.3%), shrinking 12-month losses to 200.

Education and health services gained 1,400 jobs (0.4%) and accounted for 75% of the total 20,100 jobs added across all sectors in 2024.

Leisure and hospitality employment grew by 600 (0.4%) with 12-month gains at 3,900 (2.5%), with financial activities also seeing 2.5% year-over-year growth after adding 400 jobs (0.3%) in December.

Government added 400 jobs (0.2%; 0.1% for 2024), followed by information (200; 0.7%; -1.3% for 2024), other services (200; 0.3%; -0.3% for 2024), and construction and mining (100; 0.2%; 1.6% for 2024).

Employment in the key manufacturing sector—which has over 5,000 openings—was unchanged for the month and declined by 100 (-0.1%) in 2024.

Professional and business services was the worst performing sector for the month and year, with 12-month losses at 2,300 (-1%).

All six of the state’s major labor market areas posted gains in December, with Hartford-West Hartford-East Hartford adding 1,700 (0.3%) to bring 12-month gains to 11,000 (1.9%).

Bridgeport-Stamford-Norwalk added 1,500 jobs—growing 4,400 (1.1%) for the year—with New Haven’s 1,100 new December jobs (0.4%) bringing 12-month gains to 6,200 (2%).

Norwich-New London-Westerly gained 500 jobs (0.4%), matching the area’s yearly gain.

Waterbury and Danbury both posted monthly gains of 300 jobs, with the former up 200 for the year (0.3%) and the latter 400 (0.5%).