The unemployment rate in Connecticut held firm at 4.2% in-state in December, but the number of total payroll jobs declined slightly after 11 months of growth, according to the most recent jobs report from the Connecticut Department of Labor.

The number of total payroll jobs dropped by 1,600, or 0.1%, in December 2022, the Department of Labor said. There are now 1,667,900 payroll jobs in Connecticut, more than 32,000 more than in December 2021.

The state added 2,900 jobs in November but factored in poll workers from Election Day and other one-day jobs. The department also noted that December is “always impacted by seasonal layoffs” and employment volatility.

“As expected given action by the Federal Reserve, we saw Connecticut numbers moderate in December,” Department of Labor Commissioner Danté Bartolomeo said. “In 2022, Connecticut added jobs faster than any year since 1996 — this strong growth created a historically high number of jobs available in the state and, with low unemployment, employers continue to be challenged by a smaller workforce. U.S. Treasury economic priorities and inflation are among the issues that we’re watching going into 2023.”

The department pointed to national issues like high inflation and rising energy costs as some reasons for the decline. The department expects growth in manufacturing and construction jobs in 2023 due to governmental priorities like transportation and housing improvements, according to Department of Labor Director of Research Patrick Flaherty.

“Despite revisions, 2022 was a strong year for the state with the addition of 32,000 jobs, a declining unemployment rate and total recovery of key industry sectors,” Flaherty said.

There are over 100,000 open jobs in Connecticut, with less than 30,000 people filing for unemployment, the department said.

Overall, Connecticut has recovered over 89% of jobs lost during the COVID-19 pandemic, the Department of Labor said. The manufacturing, construction and transportation and warehousing sectors have all fully recovered from their pandemic losses. Every other industry has been growing aside from the finance and insurance sector, the department said.