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Connecticut's Economy: Slow and Steady in 2025

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Connecticuts economy stagnated in Q4 2025, growing just 0.5% annually, matching the national pace. This marked a significant slowdown from the previous quarters 5.6% surge, which had Connecticut ranking 4th nationwide. For the full year, Connecticuts growth was 2.4%, placing it 12th among states. Key sectors like information, healthcare, and durable goods manufacturing drove growth, while finance, insurance, and food services experienced losses. Personal income rose 3.8% in Q4, surpassing the U.S. average. The job market cooled in 2025, adding only 1,200 net jobs and seeing a labor force shrink. However, January saw a surge with 5,300 new jobs, reaching record employment despite a slight uptick in unemployment to 4.5%. State officials describe the economy as steady, with hiring holding firm amid uncertainty.

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Connecticut's Economy: Slow and Steady in 2025

Hartford News Today | 2 Min News | The Daily News Now!

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Hartford News Today | 2 Min News | The Daily News Now!Connecticut's Economy: Slow and Steady in 2025. Machine-transcribed; use the interactive transcript above to jump the player to any line.

It's April 9th. Hartford News Today starts now, AI-powered and ready. I'm Cory with the story. Connecticut's economy hit the brakes hard in the fourth quarter of 2025, growing just 0.5% annually, right in line, with the national pace. That's a big slowdown from the third quarter's 5.6% surge, which had the state-ranking fourth nationwide while the U.S. clocked 4.4%. For the full year, Connecticut's growth came in at 2.4%, landing 12th among all states. Nationwide, 35 states saw gains, from North Dakota's 3.8% high to an 8.3% drop in the district of. Columbia. Key drivers included private sectors like information, wholesale trade, health care, and durable goods manufacturing, which offset losses in, non-derables, but finance, insurance, transportation, and food services took hits. Personal income rose 3.8% in the quarter, beating the prior period's 2.9% and topping

the U.S., 3.4%. The job market cooled overall in 2025, adding only 1200 net jobs as the labor force shrink by nearly 12,000. Then January flipped the script with 5,300 new jobs, hitting record employment even as unemployment ticked to 4.5%. It officials call it slow and steady, with hiring, holding firm amid uncertainty, keeping Connecticut's economy chugging along without major drama.

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