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Unemployment rate at 4.6 percent; nonfarm jobs increase by 300
WETHERSFIELD, March 8 – Connecticut’s nonfarm employment in January was 1,668,900, an increase of 300 jobs from
the revised December 2005 figures, the Connecticut Department of Labor announced today. On a seasonally adjusted
basis, this is a gain of 12,300 jobs compared to the January 2005 figure. Data published in this release reflect revisions
made as part of the annual benchmarking process.
The leisure and hospitality sector showed the largest gain, up 900 jobs. This was followed by trade, transportation and
utilities, up by 800; educational and health services, up 700; financial activities up 300; and other services unchanged.
Decreases were seen in government, down 1,700; professional and business services, down 500; and construction, down
200. Both the information and manufacturing sectors remained relatively unchanged.
“Connecticut’s economy continues to grow,” said Governor M. Jodi Rell. “The state gained more than 28,000 new jobs
during the past two years. Most impressive, we have seen nine straight quarters of job growth. Our economy is clearly
going in the right direction, and we need to increase the momentum. That is why our core mission of this legislative
session must be to stimulate economic growth and create and retain good jobs.”
“Connecticut began the year on the right track with positive news about the state’s economy,” said State Labor Economist
John Tirinzonie. “While the overall numbers in January did not show a sizeable increase, job gains in most sectors
overshadowed a noticeable decline in government employment and we are now in the fifth consecutive month of job
growth. Since our economic recovery, which began in October 2003, Connecticut has experienced 19 out of 28 months of
upward movement. With rising energy costs, foreign competition and an expected cooling of the national economy, let’s
hope our economy won’t be side-tracked later this year,” he added.
The manufacturing production workweek in January 2006, not seasonally adjusted, averaged 42.4 hours. That is a
decrease of three-tenths of an hour from December 2005, and an increase of four-tenths of an hour from a year ago when
it was 42.0 hours. Average hourly earnings at $19.45, also not seasonally adjusted, were down two cents from the
December 2005 figure and up 60 cents from January 2005. The resulting average weekly wage for manufacturing workers
in January 2006, at $824.68, was down $6.69 from the previous month and up $32.98 from a year ago.

Unemployment rate is 4.6 percent
Based on the household survey, the estimate of unemployed people, seasonally adjusted, decreased by 1,000 in January
and unemployment rate was unchanged from December’s revised estimate of 4.6 percent. The unemployment rate for
January is three-tenths of a percentage point less than it was in January 2005 when it was 4.9 percent, and one-tenth of a
percentage point below the nation’s rate of 4.7 percent. The unemployment rates in eight of the nine labor market areas,
not seasonally adjusted, were down over the year. Average weekly initial unemployment claims for first-time filers
decreased over the month by 911 to 3,524. The average for January was down 724 claims over the year.

2005 Overview: Economy and Unemployment
Connecticut had favorable news about both the economy and unemployment during 2005. A special report looking at the
state’s detailed industries and labor force is noted on the following pages.

Note: The nonfarm employment estimate is derived from a survey of businesses and is a measure of jobs in the state; the
unemployment rate is based largely on a household survey and is a measure of the work status of people who live in Connecticut. All
figures used in this report are adjusted for seasonal variation (i.e. seasonally adjusted) except where noted.

Contact: Nancy Steffens (860) 263-6535 3-8-06

Labor market information is available on the Internet at
2005 Overview: A Good Year for Connecticut’s Economy

Connecticut continued moving in the right direction during 2005, increasing employment by 12,500 or approximately
0.8 percent, slightly more than half the percent change nationally. When combined with job growth of 15,700 in 2004,
the state’s employment increased by more than 28,000 over the two-year period. The state still has not reached its
pre-recession peak of 1,700,200 jobs achieved in July 2000. Here’s an overview of how our industry groups fared
during 2005:

Construction – Low interest rates and a high number of new housing permits were mainly responsible for record
levels of employment in the construction industry, hovering just over 66,000, an increase of 400 from the 2004 figure.
Most of the employment gains were seen in specialty trades contractors, as a continued rise in home building and
home improvement amplified the need for workers in this industry. Increased costs of building materials and higher
interest rates, however, may have some negative effect on employment during 2006, but some major construction
projects already planned to begin this year should defray some of the expected losses in this industry supersector.

Manufacturing – After remaining steady in the first half of 2005, employment did not return as expected after the
summer shutdown and vacation period, bringing the average annual employment for 2005 down 1,800 from the 2004
level. Both durable and nondurable components in manufacturing experienced job declines, but were most noticeable
on the nondurable side. In durable goods, which shed 650 jobs, transportation equipment manufacturing showed the
most encouraging improvement in employment from 2004 annual levels, increasing by 250 to an annual average of
43,400 jobs. Despite the expected continued growth in aerospace products manufacturing, announced job cuts in ship
and boat building may well overshadow any additional gains in the transportation equipment manufacturing industry.
Electrical equipment manufacturing also showed a positive increase to bring its employment level to 10,500, while
machinery and computer and electronic products manufacturing combined to eliminate more than 700 jobs in this
supersector. A flattening in chemical manufacturing employment along with losses in printing and related support
activities, and plastics and rubber products manufacturing accounted for the drop of 1,100 in nondurable goods

Connecticut’s Manufacturing Production Index, produced by the Connecticut Labor Department, again posted annual
average increases in 2005, after strong gains in 2004. A rising production index paired with small job declines reveals
the continual productivity gains we are seeing in our state and nation, especially in manufacturing. This increase in
work er productivity along with advancements in technology has held down job growth in this supersector, and this
trend will likely continue in 2006. Also, a slowdown in the national economy, continued foreign competition, and higher
energy costs could additionally curb job growth in this sector during 2006.

Trade, Transportation, and Utilities – Annual average employment in trade approached 260,000 for year 2005, an
increase of nearly 1,200 jobs since 2004. Employment gains were posted in both wholesale and retail trade this past
year, with more than half in the wholesale trade. Electronic markets, agents, and brokers was the biggest gainer in the
wholesale sector, increasing employment levels by more than five percent, or approximately 800. In retail trade, where
close to 200,000 jobs are found, noticeable gains were seen in general merchandise stores and clothing and clothing
accessory stores. Warehousing and storage, a growing industry in Connecticut, was the main generator of jobs in the
transportation sector, adding more than 2,000 to its employment level of 41,000 in 2004. With the announced closing
of one major warehouse facility during 2006, some drop or tempering in employment may be seen this year.
Transportation services, while posting strong numbers in 2005, may begin to feel the pinch from high energy costs,
thus negatively affecting employment levels in 2006. Jobs in the utilities industry remained relatively unchanged.

Information – Employment in this supersector, which has been declining since 2000, continued its drop in 2005,
losing another 800 jobs. Most of the loss has been in telecommunications, but publishing industries also showed a net
loss of 300 jobs on an annual average basis, leaving broadcasting as the main supplier of new jobs in this supersector
during 2005. Continued growth in this industry is expected this year as one major television broadcaster expands its
operations in the state.

Financial Activities – Financial services and insurance comprise the bulk of employment within this supersector.
Credit intermediation, mainly banking, remained relatively stable throughout 2005, with only a slight improvement in
employment compared with 2004. Securities, commodity contracts, and other financial investments continued its
upward movement, gaining an estimated 1,000 plus new jobs from 2004 to 2005, and close to double its 10,000
employment ten years ago. This dynamic investment segment has been beneficial for our state, and with the continued
expansion of foreign investment here and the concentration of hedge fund companies mainly in Fairfield County,
employment should again add jobs in 2006. Insurance carriers, a mainstay for the state and especially the Hartford
region, saw a slight decline in overall numbers, mainly due to buyouts and corporate restructuring, with only direct life
insurance seeing any positive gains. Real estate employment was up 500 jobs over the year, bringing its level to
Professional and Business Services – Over the last two years, this supersector has been adding jobs, with a
noticeable spike of 2,500 between 2004 and 2005. In professional, scientific, and technical services, only legal
services showed any job loss. Computer systems design services recorded the largest increase of approximately 500,
bringing its annual average employment to nearly 19,000. Smaller gains were seen in architectural, engineering, and
related services, and in accounting, tax preparation, bookkeeping and payroll services, which employ approximately
12,500 and 10,000, respectively. Management, scientific, and consulting services, with more than 11,000 workers in
Connecticut, also increased its employment level by 300 during 2005, and is expected to continue growing as more
administrative management and marketing consulting firms expand their operations in the state. Management of
companies and enterprises, which accounts for some 25,000 jobs in Connecticut, has shown noticeable declines in
numbers (-500), mainly due to corporate restructuring and some reclassification.

In industries relating to business services, the largest of this group, employment services, which deals in both
temporary and permanent placements, has created nearly 2,000 new jobs on an annual average basis in 2005, a 2.7
percent jump over the 2004 level. More than 32,000 jobs are located in this industry. Also within business services,
services to buildings and dwellings ended the year on a positive note, while investigative services showed some
employment loss in 2005.

Educational and Health Services – This large supersector has been a major producer of jobs each year in
Connecticut despite the recent recession. Since 2000, employment in education and health services has increased by
approximately 28,000, with more than 4,000 added during 2005. Job growth in educational services (excluding state
and local education) is estimated to have increased by 1,300, but more than two-thirds of new jobs in the educational
and health services supersector during 2005 were in health care and social assistance. Hospitals showed the most
noticeable gain, adding almost 600 to bring their employment level to 56,000, followed closely by offices of physicians,
which provided another 500 jobs to the nearly 29,000 in 2004. Nursing and residential care facilities also remained
relatively unchanged, but with the growing percentage of the state’s population over 65 years of age, this industry
sector should see prolonged expansion in employment throughout this decade.

Social assistance, while the smallest component of this supersector, grew the fastest during 2005, creating
approximately 1,200 jobs or an increase of more than three percent. Child care services, which employ approximately
12,000 in the state, showed a relatively small increase in employment level between 2004 and 2005.

Leisure and Hospitality – This supersector has also been a major supplier of jobs in Connecticut. With an estimated
average of 130,000 workers, leisure and hospitality has grown by approximately 2,000 this year alone. The majority of
new jobs were found in food services, especially those among limited-service eating places. With employment
exceeding 90,000, this industry should continue to create a large number of jobs in 2006 as the tourism industry
continues to grow in Connecticut. With the closing of the grey hound racing facility, employment in arts, entertainment,
and recreation (employment in the two casinos is included in local government, not in this industry group) showed a
drop in annual average employment between 2004 and 2005.

Other Services – The smallest of all the supersectors, this group has shown some growth in 2005, but little change in
employment over the last several years. Positive employment change was seen in personal and laundry services, and
most of the additional jobs were created in the religious, grantmaking, civic, and professional organizations group,
which accounts for close to 30,000 jobs.

Government – Both state and local government entities showed some gain in the annual number of jobs during 2005.
In federal government, postal service, which accounts for more than half of all federal jobs in Connecticut, shared a
small loss in employment with other federal agencies. Local government did manage to add more than 900 jobs
throughout 2005, mainly in local government education. Indian tribal government, counted in local government
employment, also added jobs, and with the proposed expansions should continue its upward movement over the next
several years. State government, which has been shedding jobs since 2000, did see some improvement in
employment levels during 2005.

2005 Unemployment: Relatively Steady
Between 2004 and 2005 Connecticut’s seasonally adjusted annual average unemployment rate remained steady at
4.9 percent. The jobless rate in 2005 peaked in March at 5.1 percent and declined in most subsequent months to end
the year at 4.6 percent in December. The state’s 2005 annual average labor force increased by 13,900 from the prior
year to 1,817,000, while the number of unemployed people, 89,100, was unchanged over the year.
Jobs - by Place of Work

Change Change
Jan. Dec. Nov. Oct. Jan. over Month over Year
2006 2005 2005 2005 2005 Number % Number %
Seasonally Adjusted
CONNECTICUT 1,668,900 1,668,600 1,667,700 1,667,600 1,656,600 300 0.0%* 12,300 0.7%
Goods Producing Industries
Construction 66,200 66,400 66,200 65,900 66,800 -200 -0.3% -600 -0.9%
Manufacturing 193,900 194,000 194,200 194,300 196,600 -100 -0.1% -2,700 -1.4%
Service Providing Industries
Trade, Transp and Utilities 313,700 312,900 312,900 312,600 310,700 800 0.3% 3,000 1.0%
Information 38,100 38,000 37,800 37,600 38,700 100 0.3% -600 -1.6%
Financial Activities 143,300 143,000 142,700 142,600 141,300 300 0.2% 2,000 1.4%
Prof and Business Services 200,400 200,900 199,900 199,200 197,700 -500 -0.2% 2,700 1.4%
Educational and Health Services 273,900 273,200 274,100 274,400 271,000 700 0.3% 2,900 1.1%
Leisure and Hospitality 130,500 129,600 129,400 130,100 128,200 900 0.7% 2,300 1.8%
Other Services 62,700 62,700 62,700 63,000 62,500 0 0.0% 200 0.3%
Government** 245,500 247,200 247,000 247,100 242,400 -1,700 -0.7% 3,100 1.3%

UNITED STATES 134,564,000 134,371,000 134,231,000 133,877,000 132,471,000 193,000 0.1% 2,093,000 1.6%
Seasonally Adjusted

CONNECTICUT NONFARM EMPLOYMENT - Seasonally Adjusted 2004 - 2006


1660 2004

1640 2005


LABOR MARKET AREAS - Not Seasonally Adjusted
Labor Market Area employment estimates are made independently of Statewide estimates.
Change Change
Jan. Dec. Nov. Oct. ... Jan. over Month over Year
2006 2005 2005 2005 2005 Number % Number %
Labor Market Areas
Bridgeport-Stamford 406,800 418,000 416,500 415,100 402,000 -11,200 -2.7% 4,800 1.2%
Danbury 68,300 70,400 70,000 69,500 67,600 -2,100 -3.0% 700 1.0%
Enfield 47,300 48,400 48,000 47,100 45,900 -1,100 -2.3% 1,400 3.1%
Hartford 540,200 552,900 553,300 549,900 535,000 -12,700 -2.3% 5,200 1.0%
New Haven 268,700 275,700 276,300 274,900 268,200 -7,000 -2.5% 500 0.2%
Norwich-New London 133,200 136,400 135,900 136,100 132,800 -3,200 -2.3% 400 0.3%
Torrington 37,200 37,500 37,900 37,500 35,700 -300 -0.8% 1,500 4.2%
Waterbury 68,500 69,900 69,800 69,300 68,300 -1,400 -2.0% 200 0.3%
Willimantic-Danielson 36,600 37,300 37,300 37,100 35,800 -700 -1.9% 800 2.2%

* Less than 0.05% ** Includes Native American tribal government employment

Data in this publication are benchmarked to March 2005. Current month's nonfarm employment data are preliminary, previous months'
data are revised. Nonfarm employment, hours and earnings, and labor force data included in this publication are developed in cooperation
with the U.S. Department of Labor, Bureau of Labor Statistics.

Connecticut Labor Situation January 2006
Persons Unemployed - by Place of Residence


January 2006 January 2005 December 2005
Percent Percent Change from Percent
of Civ. of Civ. Year Ago of Civ.
Labor Labor Percentage Labor
Number Force Number Force Number Points Number Force

Seasonally Adjusted
Unemployed 82,900 4.6 89,300 4.9 -6,400 -0.3 83,900 4.6
Labor Force 1,820,000 1,810,100 9,900 1,818,900
Unemployed 7,040,000 4.7 7,723,000 5.2 -683,000 -0.5 7,375,000 4.9
Labor Force 150,114,000 147,956,000 2,158,000 150,153,000

Unemployed - Not Seasonally Adjusted
CONNECTICUT 91,300 5.1 95,800 5.4 -4,500 -0.3 76,100 4.2
Labor Market Areas
Bridgeport-Stamford 22,200 4.8 22,300 4.9 -100 -0.1 17,600 3.8
Danbury 3,400 3.8 3,600 4.1 -200 -0.3 2,800 3.1
Enfield 2,300 4.9 2,400 5.0 -100 -0.1 2,100 4.3
Hartford 29,600 5.2 31,800 5.7 -2,200 -0.5 25,000 4.4
New Haven 15,000 5.0 16,000 5.4 -1,000 -0.4 12,800 4.3
Norwich-New London 7,100 4.8 7,100 4.9 0 -0.1 6,100 4.1
Torrington 2,700 4.9 3,100 5.8 -400 -0.9 2,100 3.8
Waterbury 6,500 6.5 6,900 7.0 -400 -0.5 5,600 5.6
Willimantic-Danielson 3,400 6.1 3,300 6.0 100 0.1 2,800 5.0

UNITED STATES 7,608,000 5.1 8,444,000 5.7 -836,000 -0.6 6,956,000 4.6

2004 - 2006

Percent Unemployed




2004 2005 2006

Connecticut Labor Situation January 2006
Not Seasonally Adjusted

Colebrook Hartland
Suffield Enfield Somers Union
Salisbury Stafford
Norfolk Thompson
Granby Enfield Woodstock
East 4.9
Barkhamsted Granby Windsor
Winchester Locks
East Ellington Putnam
Windsor Pomfret
Willington Ashford Eastford
Simsbury Tolland
Cornwall Goshen New
Canton Willimantic-Danielson
Bloomfield South
Torrington Hartford
Vernon 6.1
Torrington Killingly
Avon Mansfield Chaplin
4.9 West Manchester
Coventry Hampton Brooklyn
Hartford East Bolton
Harwinton Burlington Hartford Hartford
Warren Litchfield
Kent Farmington Hartford Andover

ton Wethersfield Scotland Canterbury Plainfield Sterling

Morris as Columbia
om Bristol New Glastonbury

Plainville Britain
Plymouth Rocky

Washington Hill
Bethlehem Marlborough Lebanon Sprague

New Watertown Berlin Cromwell Franklin
Wolcott Southington Portland Lisbon

Waterbury East
Griswold Voluntown

Danbury Roxbury
Woodbury 6.5 Hampton Colchester
Waterbury Middletown Bozrah
3.8 Bridge- Middlebury
Middlefield Preston
water Cheshire
Naugatuck East Salem Norwich-New London
Wallingford Durham Haddam Haddam 4.8 North
Beacon Stonington
Montville Ledyard
Oxford Falls Bethany

Danbury Newtown
New Haven Chester
Hamden Lyme
Bethel Seymour
North 5.0 Killing-
Haven worth East
Wood- River Lyme Groton
Monroe Ansoniabridge North Essex London
Derby Old
Shelton New Guilford West-
Ridgefield Old Lyme
Redding Haven East Clinton brook
HavenBranford Saybrook
Bridgeport-Stamford Orange West Madison
4.8 Haven

Easton Trumbull

Milford January 2006
Connecticut: 5.1%
Stamford Norwalk
U.S.: 5.1%
Unemployment Rates by Labor Market Area
(All rates are preliminary, not seasonally adjusted.)
Areas established from the 2000 Census Norwich-New London Labor Market Area includes Westerly, RI

Manufacturing Production and Related Workers


Average Weekly Earnings Average Weekly Hours Average Hourly Earnings

Jan. Jan. Change Dec. Jan. Jan. Change Dec. Jan. Jan. Change Dec.
2006 2005 over Yr. 2005 2006 2005 over Yr. 2005 2006 2005 over Yr. 2005

CONNECTICUT $824.68 $791.70 $32.98 $831.37 42.4 42.0 0.4 42.7 $19.45 $18.85 $0.60 $19.47

Bridgeport-Stamford 860.66 826.91 33.75 813.56 41.8 41.7 0.1 39.9 20.59 19.83 0.76 20.39
New Haven 634.41 671.40 -36.99 642.80 39.8 43.4 -3.6 40.1 15.94 15.47 0.47 16.03
Norwich-New London 820.25 783.41 36.84 830.33 42.5 42.6 -0.1 43.0 19.30 18.39 0.91 19.31

Due to constraints of the sample upon which estimates are made, manufacturing hours and earnings estimates for the Hartford and
Waterbury labor market areas are being suspended.

Connecticut Labor Situation January 2006
Seasonally Adjusted

Nonfarm Total Unemployment
Employment (000s) Rate
Jan 1,656.6 4.9 Nonfarm Employment
Feb 1,659.6 5.0
Mar 1,657.3 5.1
Apr 1,664.3 4.9 1,670

May 1,661.6 5.0 1,660
Jun 1,663.9 4.9 1,650
July 1,663.8 4.9
Aug 1,663.7 5.0
Sep 1,665.4 4.9 1,630
Oct 1,667.6 4.9 1,620
Nov 1,667.7 4.7 Jan Mar May July Sep Nov Jan Mar May July Sep Nov
Dec 1,668.6 4.6 2005 2006

Jan 1,668.9 4.6
Mar Total Unemployment Rate
May 5.5

Jun 5.0

Sep 4.0

Oct 3.5
Dec Jan Mar May July Sep Nov Jan Mar May July Sep Nov
2005 2006

Avg Weekly Avg Manufacturing
Initial Claims Weekly Hours*
Jan 4,248 42.0 Average Weekly Initial Claims
Feb 4,046 41.9 5,000

Mar 4,298 42.0
Apr 4,203 42.3
May 3,972 42.2 4,000
Jun 3,995 42.5
July 4,160 42.1
Aug 4,232 41.8 3,000
Sep 4,022 42.0
Oct 4,294 42.1
Jan Mar May July Sep Nov Jan Mar May July Sep Nov
Nov 4,175 42.3 2005 2006
Dec 4,435 42.7

Jan 3,524 42.4
Mar Average Manufacturing Weekly Hours
Apr 43.0
Jun 42.0
Sep 41.0

Nov 40.0
Dec Jan Mar May July Sep Nov Jan Mar May July Sep Nov
2005 2006

* Not Seasonally Adjusted

Connecticut Labor Situation January 2006