Connecticut Unemployment Back to 9 Percent

Job growth appears to be slowing and wages are on the decline.

The October unemployment rate increased a tenth of a percent to 9 percent, according to figures from the Connecticut Department of Labor. One survey showed that 1,200 jobs were added in the previous month despite the uptick in the unemployment rate. 

“With October’s results we are, for the first time, showing year-over-year declines in job levels,” said said Andy Condon, director of the Department of Labor’s Office of Research. “However, we believe that when we complete our annual benchmark revisions in March, we will be showing as many as 8,000 to 9,000 more jobs in the state than the payroll survey currently indicates. If so, the current year-over-year declines will no longer hold.”

The state’s unemployment rate peaked at 9 percent twice this year. Before July 2012, the previous time unemployment was at 9 percent was April 2011.

In a written statement, Gov. Dannel P. Malloy stressed the severity of the recession that slumped the economy.

“Though not as severe this month as in previous months, the household and business surveys are once again pointing in opposite directions,” Malloy said. “On the one hand, we created 1,200 jobs this month.  But on the other, our overall unemployment rate increased slightly.  If these conflicting results tell any single story, it’s that more people are attempting to enter the workforce because conditions are beginning to improve.”

The survey shows that the average workweek droped from 34.4 hours in 2011 to 34 hours in October. Average hourly earnings dropped 54 cents to $27.93 in a year. 

Daria Novak November 20, 2012 at 02:54 PM
If we include people who retired early because they couldn't find work, those who stopped searching, the under-employed, & those who could find only part-time work, the CT total unemployment number of 9% would jump much higher. The federal government's Dept of Labor Statistics uses several types of unemployment numbers. The statistic including those people I just mentioned above is called the "U-6" or total unemployment number. This past year the national U-6 number has been hovering around 15% when our CT unemployment using the less inclusive statistic (meaning those looking for work but can't find it) was in the 8% range. October's CT unemployment at 9% indicates the real total unemployment in CT probably is much closer to 16%. Government in Hartford and Washington can play with statistics to attempt to alter the perception of the massive size of the unemployed, but the reality is a lot of hard-working citizens in this great nation are unable to find positions to feed their families. As we continue with the same politicians in office, and if we use the same policies, we'll only achieve more of the same failed results. Elections are over. We must come together to hold our officials accountable & demand they stop the excessive spending that put us in this dire situation. No nation in history has ever emerged from poverty using government spending as the tool to achieve it. It failed in the USSR, China, socialist Europe and every other place it was tried.
Will Wilkin November 20, 2012 at 04:06 PM
Daria Novak is absolutely right, the REAL unemployment rate is much higher than 9%. John Williams compiles an Alternate Unemployment Rate that comes to about 23%. That would be the official unemployment rate right now if the BLS were still using the methodology of pre-1994. Williams adds "the long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers": http://www.shadowstats.com/alternate_data/unemployment-charts Our high unemployment and stagnant real wages are the predictable, inevitable result of bipartisan policies that benefit the wealthy at the expense of the vast majority of Americans. There is obviously no way to genuinely hold elected officials responsible, because both hands of the 2-party system have been bought by the wealthy who profit from the offshoring of manufacturing and the high dollar policies. While the super-rich stake their future with the global corporations and "too-big-to-fail" banks enjoying $Trillions in bailouts, the vast majority of Americans lost jobs, wages and/or homes and savings in the bubble economies that enriched the same financial services industry still enjoying huge "QEs" bailouts. Look at Jim Himes as an example of Goldman Sachs still writing the rules despite massive harm to our country. His "base" was so terrified his Republican opponent would do it but they let him to do the same.
Will Wilkin November 20, 2012 at 04:51 PM
Daria, it is not "excessive spending" that causes our growing unemployment and poverty. It is the offshoring of our jobs and all the ripple effects of that offshoring. Losing the private sector engines of wealth creation has predictably resulted in difficulty properly funding the public sector, which is also essential to a high quality of life and a democratic society. The "Grand Compromise" and "fiscal cliff" deliberately exploit the offshored economy to ram through the longstanding rightwing agenda of attacking Social security and Medicare, both of which should be STRENGTHENED not cut. The cuts and privatization will do nothing to actually reduce private sector medical cost inflation, which is the real crisis of Medicare, nor will it replace the lost economic security for Americans over 65 (going up they say). In other words, after selling out our jobs they now want to attack our Social Security. That's the kind of Grand Compromise" the 2 parties of the 1% propose to make with each other. The REAL compromise is of the future of the American people, sold out by both parties.
Will Wilkin November 20, 2012 at 04:53 PM
The leadership of the Republican and Democratic Parties alike have made the rules so this offshoring is irresistible to CEOs and investors. That is why it is not "greedy corporations" I blame but rather Bush 1, Clinton, Bush 2, Obama --and their partisans in Congress. These are the officials who write and sign the Free Trade Agreements (FTA's) that compel corporate management to move operations to other countries where profits will be higher for their company. The result for the USA is the offshoring of the factories and jobs that are the engines of wealth-creation in our country. The offshoring of factories and R&D labs is the offshoring of our jobs, wages, tax base, GDP, not to mention all the multiplier-effect jobs mfg creates, and not to mention all the lost opportunities for future innovation & production. The jobs & prosperity of our children have been deliberately moved to Asia and other countries offering more profitable conditions. The Republican and Democratic Parties understand very well how FTAs have exported 6 million jobs since 2000, but their wealthy sponsors have grown enormously rich in the process. This dismantles and discards essential pieces of our nation's industrial ecosystem itself, meaning we are losing the knowledge, skills & apparatus needed to make what we use now & what will be key to prosperity in the coming decades. Congress and the Presidents have sold out the American people to those who benefit from the wreck of our economy.
Will Wilkin November 20, 2012 at 04:54 PM
Compounding the larger decay of our infrastructure as public moneys are instead squandered on 700-1000 military bases on foreign soil and permanent multiple undeclared wars --on borrowed money. No Empire can long survive the offshoring of its economic base, and no Republic can long survive the militarism and secrecy and sheer dictatorship in "war on terror" laws that authorize Executive kill lists and "indefinite detentions" on secret evidence with zero due process. In a 2 party system where both parties are controlled by the same corporate and militarist interests, there is no way for citizens to "hold our elected officials accountable." That is the larger context of the unemployment and poverty spreading throughout America. The way to reverse it would be to put a full employment policy in front center of our political agenda, and behind that a national strategic economic vision with the Industrial Policy to achieve it. That vision should include ONshoring the manufacturing and R&D in those industries key to 21st century economic growth and prosperity. It would bring back the "American System" that from Alexander Hamilton until the 1970s made our country rich. That system used protective tariffs and govt-industry partnership to develop industry, technology and infrastructure as part of a total winning system.
Will Wilkin November 20, 2012 at 04:55 PM
The extreme libertarian free market ideology that has dominated public discourse for the last 3 decades has blinded us to the myriad ways we actually have socialism for the rich and instead been used to demonize the safety net that has kept tens of millions out of poverty, especially Social Security and Medicare. And of course that libertarian ideology has been used to justify the disastrous free trade policies that opened the holes in the US economy, still bleeding an average of 15,000 manufacturing jobs ever MONTH. Its not just the FTAs but also the overvalued dollar generally that combine to make offshoring so profitable.
Will Wilkin November 20, 2012 at 04:55 PM
One way to demand change is to sign this petition: WE PETITION THE OBAMA ADMINISTRATION TO: Leave the World Trade Organization. By signing the agreement with the WTO, the U.S. Congress agreed to conceded to: Conforming U.S. laws, regulations and administrative procedures to the will of the WTO (Article XVI, p. 10) Subjecting all federal, state and local laws and practices that affect trade to international review by the WTO (Article XVI, p. 10) Allowing any WTO member country to challenge federal, state and local laws and practices as trade impeding (Section 2 of the Dispute Settlement Understanding) Taking all trade disputes to the WTO judiciary – giving the WTO final jurisdiction over all trade altercations. No appeal exists outside of the WTO (Section 2 of the Dispute Settlement Understanding) Empowering the WTO to enforce its rulings by imposing fines on the United States until we comply. Click below to sign: https://petitions.whitehouse.gov/petition/leave-world-trade-organization/mqNxY54n
Dave November 21, 2012 at 01:19 PM
Tanya Carver November 21, 2012 at 05:12 PM
As a business owner, here's what I received today : "Employers will see a reduction in their Federal Unemployment Tax Act (FUTA) tax credit for 2012 because the state is unable to repay the outstanding loans for the unemployment insurance (UI) program. This is also known as a FUTA credit reduction. In addition to interest costs, states with federal loans that are outstanding for two consecutive years must make additional payments to FUTA. The additional FUTA tax collected will be applied to the State's outstanding loan balance thereby reducing the states loan principal. "Connecticut credit's reduction is 0.6%". Business' already had to make an extra payment in July. I fear this is just the beginning of additional taxes coming to Business owners. So much for creating jobs...
Will Wilkin November 21, 2012 at 08:36 PM
Hi Tanya, You are right that deepening long-term unemployment is costing more than just those persons unemployed. Offshoring millions of jobs and losing the additional millions of multiplier-effect jobs they would have created results in lower GDP, lower tax base, higher unemployment and food stamp costs, and long-term loss of competitiveness and prosperity for our nation. You might be interested in a comment posted today by Kenneth Davis Jr., former Assistant Secretary of Commerce, agreeing with your skepticism expressed in "so much for creating jobs..." QUOTE: ...We absolutely must reach Congress and the Obama Administration to demand action to save our country. I work on that objective every day. But for three years the Obama Administration and the President’sJobs and Competitiveness Council have turned down all requests for meetings and have failed to respond to any e-mails. After one attempt to reach Jeff Immelt, GE CEO and Chairman of the Jobs Council, he had a staff assistant call me. She said “You must know that the Council Members are mostly CEOs from multinational compmanies. You can’t expect them to do anything to help U.S. domestic industries!” Wow! I should have recorded that statement. K.N. Davis, Jr. Former U.S. Ass’t Secretary of Commerce UNQUOTE Read it here: http://economyincrisis.org/content/can-americas-middle-class-regain-prosperity#comments


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