Connecticut added 6,500 nonfarm jobs last month and the unemployment rate dropped to 3.7% from 4%, according to the preliminary, seasonally adjusted July data from the Connecticut Department of Labor. The federal unemployment rate last month was 3.5%.

But the Norwich-New London-Westerly area saw an estimated loss of 400 jobs, a 0.3% decrease.

The private sector in Connecticut has recovered 88.3% of the jobs lost in COVID-19 lockdown in March and April of 2020, while the public sector is 61.9% recovered.

Overall, Connecticut has recovered 249,200 of the 289,400 nonfarm jobs lost, and private sector employment increased by 31,400 jobs compared to July of last year. Nationwide employment returned to 100% of pre-pandemic levels last month.

“Job growth has been consistent in 2022 and the unemployment rate is down to its early 2019 level,” said Patrick Flaherty, director of the Office of Research at CTDOL, in the report. “Many industries are above pre-pandemic levels including construction, wholesale trade, and professional, scientific, & technical services.”

Construction and mining saw the highest percent growth in July, at 2.5%, and Flaherty said the industry has recovered 112% of the jobs lost during the pandemic.

Local government added 3,800 seasonally adjusted jobs in July, more than any other sector. But local government employment fell when not seasonally adjusted, though with a smaller decline than usually seen in July. Seasonal adjustment is the process of removing normal seasonal changes from monthly data.

Four sectors lost jobs in July: leisure and hospitality, other services, information, and financial activities.

Chris DiPentima, president and CEO of the Connecticut Business and Industry Association, noted that July represented the strongest month of jobs growth in Connecticut this year and said the organization is encouraged by the rebound in construction jobs after losses in June.

“July has historically been a strong month for job growth in the state and it’s critical that we sustain this momentum as the state continues its slow recovery from the pandemic,” DiPentima said in a news release.

He noted that the state’s year-to-date job growth of 1.4% trails the national average of 2.2%, “highlighting the need for a greater focus on addressing those obstacles to a faster recovery.”

He said the “worker shortage crisis remains one of our biggest growth obstacles,” considering, Connecticut has far more jobs available than unemployed people.

e.moser@theday.com