The latest job numbers are here and, boy, no one seems happy about them. Not even a little. That’s because they signal that Connecticut may be heading towards another fiscal disaster. Otherwise known as: a recession.
CT News Junkie reports that the state gave up an additional 2,000 jobs last month. On top of that, labor officials revised August’s job losses upwards from 3,900 to 4,200.
On the plus side, Connecticut created 3,500 jobs this year. However, that doesn’t excuse the fact that the state lost 7,900 jobs in the past three months.
Yet somehow, Connecticut’s unemployment rate shrank to 4.6 percent. But, it’s probably because more and more people wanting something full time lost hope. Or, you know, they just left.
Anyways, Connecticut only managed to reclaim 76.2 percent of the jobs it lost during 2008’s Great Recession. However, these latest numbers are far from encouraging or triumphant. Actually, they signal something else entirely.
Another recession. Joy.
That’s what Don Klepper-Smith, chief economist and director of research at DataCore Partners, believes. He predicts the state won’t even achieve a full job recovery until after that “full-blown domestic recession” hits. So, we better start buckling up for that. If you haven’t seen the signs already, that is.
Klepper-Smith went on to say our political leaders can’t pin the blame on anyone but themselves:
“It’s not an overstatement to say that the state’s economy has been challenged in a major way as profound structural changes, often ignored by policy makers, have come home to roost in a major way,” adding that the, “disregard for taxpayer well-being has finally got us to a tipping point.”
Jobs in the private sector continue to dwindle. On top of that, more and more part-time and minimum wage jobs continue to flourish. So, there’s a definite imbalance ballooning in our job market.
Government jobs, including in the casinos, lost 3,600 jobs since the beginning of the year. The construction and mining sector also gave up 1,400 positions last month.
Luckily, the professional and business market saw a change – adding 1,100 new jobs in September. Even better, the New Haven labor market bucked the trend and added 1,200 positions last month.
Meanwhile, all other labor markets lost between 100 to 200 jobs.
But, Klepper-Smith says no one should be encouraged by this news.
“The broader body of data now suggests in strong terms that full job recovery is not likely to materialize until sometime in late 2019.”
What do you think the state can do to prevent another catastrophic recession? Or, should we just let the state burn to the ground and rise out of the ashes like a phoenix?