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Unemployment still high in region as state continues to gain back jobs - theday.com

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Norwich and New London posted two of the three highest unemployment rates in Connecticut last month, statistics released Friday by the state Department of Labor show.

Norwich’s rate was 17.6%, tying Hartford for the state’s highest rate, with New London right behind at 16.8%.

The release of town-by-town unemployment rates followed the department’s release Thursday of a monthly jobs report showing the state added an estimated 26,500 jobs in July. In addition, the previous estimate of 73,300 jobs added in June was increased by 4,000 jobs.

Still, for the year, nonagricultural employment in the state was down by 146,300 jobs, or 8.7%.

“Connecticut saw another large job gain in July,” Andy Condon, director of the Labor Department’s Office of Research, said in a statement. “However, this gain has to be viewed from the perspective of the unprecedented job losses caused by public health concerns as a result of the COVID-19 pandemic. The largest job gains in July were seen in leisure and hospitality, trade, and ‘other services’ — sectors heavily impacted by pandemic closures. Professional and business services also made a strong showing after several months of weakness.”

Commenting on the July numbers, Chris DiPentima, president and chief executive officer of the Connecticut Business and Industry Association, noted the state has recovered 45% of the 291,300 jobs it lost in March and April.

“This is a positive report, particularly with some of the hardest hit sectors — including retail trade and leisure and hospitality — again among the big gainers,” he said. “Connecticut continues to be well-positioned in terms of the state’s overall economic rebound and we must do everything we can to help employers nurture and protect that recovery.”

DiPentima said questions surround the state’s economic picture, including the pending school year, the role of federal stimulus and unemployment benefit programs, and the likelihood of a resurgence of the coronavirus in the fall and winter.

The July jobs report shows eight of the 10 major industry “supersectors” had employment gains in the month, led by leisure and hospitality, which added 11,600 jobs. Trade, transportation and utilities added 7,800 jobs. The government supersector, which includes all federal, state and local employment, including public education and Native American casino employment on tribal land, lost 2,600 jobs.

All six of the state’s Labor Market Areas experienced job gains, with the Norwich-New London-Westerly area adding 3,100 jobs, a 2.9% increase.

Problems with U.S. Bureau of Labor Statistics data collection continue to complicate efforts to establish all states’ unemployment rates, the Connecticut Labor Department said. As a result, the department considers the official Connecticut unemployment rate for July — 10.2%, the same as the national rate — to be an underestimate.

The department’s Office of Research estimates Connecticut’s actual unemployment rate to be in the range of 15% for mid-July.

Town-by-town unemployment rates are generated under the Local Area Unemployment Statistics program, a cooperative effort of federal and state government. People with jobs are counted as employed. People who are jobless, looking for jobs and available for work are regarded as unemployed, and people who are neither employed nor unemployed are considered to not be in the labor force. The unemployment rate represents the percentage of the labor force that is unemployed.

Other New London Country towns with high July unemployment rates are Griswold, 12.7%; Preston, 12.6%; and Montville, 12.1%. Lyme’s rate of 6% is the county’s lowest.

b.hallenbeck@theday.com

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