Connecticut is losing workers fast. Between January and November 2025, the state lost 19,600 workers. Meanwhile, the U.S. workforce grew by 1.9 percent.
Retirements, people moving away, and changes in immigration policy hurt Connecticut’s businesses.
About 23 percent of Connecticut workers were born outside America. Economic pressure is building. Layoffs and job losses loom ahead for the state.
September’s Hemorrhage
Connecticut lost 5,700 jobs in September 2025 alone—the worst month in years. The number dropped even lower later. The Connecticut Business & Industry Association called it “staggering.”
From November 2024 to November 2025, the state added only 1,800 jobs total. That’s just 0.1 percent growth. The U.S. average was 0.6 percent. Business leaders wonder what comes next.
The Retail Reckoning Begins
Retailers left Connecticut before Macy’s. Walgreens closed its Killingly distribution center in May 2024. That closure killed 322 jobs. Edgewell Personal Care announced it would close its Milford plant by the end of 2027.
That shutdown would affect 293 workers. These closures weren’t surprises. They showed a pattern. Retail distribution centers once anchored Connecticut jobs. Now they’re moving away.
The Pressure Mounts
Retail stores face serious pressure. Amazon and other e-commerce giants set high customer expectations. Warehouse work is hard, repetitive, and low-paying. Companies struggle to hire and keep workers.
Automation technology has become more advanced and cheaper. AI systems, robots, and automated picking run 24/7. They don’t get tired. They don’t demand wages. Retailers made a choice: keep humans or automate?
Macy’s Cheshire Closure
Macy’s Inc. filed official notice on January 13, 2026. The company will close two distribution centers in Cheshire, Connecticut. The facilities sit at 475 Knotter Drive and 181 West Johnson Ave.
The closures will eliminate 993 jobs by August 2026. This is permanent. CEO Tony Spring calls it “Bold New Chapter.” The plan saves $235 million per year. Connecticut faces its biggest retail job loss in years.
Cheshire’s Earthquake
Macy’s has run operations in Cheshire since 1986. That’s 40 years. The company was one of the town’s biggest employers. Hundreds of families depended on warehouse paychecks. Macy’s will cut jobs in phases.
March 14: night shift ends. April 4: part-time workers leave. August 1: weekend workers go. August 29: day shift ends. A small crew stays until April 2027 to shut down buildings. Change will be slow but total.
The Human Cost Surfaces
Warehouse workers at Macy’s earned $16 to $18 per hour. Equipment operators and supervisors earned a bit more. But all faced job loss. One-bedroom apartments in Connecticut cost over $1,400 per month. Workers couldn’t wait for better jobs.
They needed money right away. Macy’s promised “transition help” and transfer chances. But transfers meant moving away. Other Macy’s locations were also closing. Workers knew the message: their jobs didn’t matter.
A Nationwide Cascade
Macy’s closed more than just Cheshire. On January 8, the company announced the closure of its Tulsa, Oklahoma, center for spring 2026. Macy’s also announced 57 more layoffs in South Windsor, Connecticut.
The company is shutting down old distribution centers nationwide. It’s replacing workers with robots and outside shipping firms. Connecticut gets hit hardest. Three Macy’s facilities are closing. Over 1,050 Connecticut jobs disappear.
The Bold New Chapter Explained
Macy’s executives explained the plan to investors in early 2024. The “Bold New Chapter” closes weak distribution centers. It adds warehouse robots. It improves inventory systems. Macy’s saved $100 million in 2024.
The company targets $235 million in annual savings by 2026. CEO Tony Spring says the plan creates “faster, more reliable operations.” Workers hear something different: fewer people, more machines, lower paychecks. Wall Street approves. Workers fear it.
The Collateral Pattern Emerges
Macy’s closure reveals a hidden trend. Connecticut attracts closures because it’s weak. Fewer workers mean less job competition. That pushes wages down. High rents and living costs trap workers. They can’t afford to wait for better jobs.
They need work now or risk homelessness. Retailers notice. Instead of raising wages and keeping workers, they speed up automation. They exploit Connecticut’s desperation. Job losses cause more job losses. It’s a downward spiral.
Union and Worker Frustration
Macy’s calls closures “necessary modernization.” Workers see something else. Corporate leaders choose profits over worker safety. The International Brotherhood of Teamsters represents some Macy’s workers nationally. The union warned that automation kills jobs faster than retraining programs can help.
Connecticut unions lack power. They can’t negotiate better closure timelines. They can’t win better severance. Workers get layoff notices with no bargaining power. They’re helpless.
Connecticut’s Failure to Compete
State economic officials blame immigration policy, high taxes, and old infrastructure. But the real problem is simpler. Connecticut has too many old costs. Macy’s Cheshire opened in 1986. Its buildings are aging. Property taxes are high.
Union contracts exist where applicable. The South has newer buildings, lower wages, and cheaper land. Automation-friendly locations win. Old Connecticut doesn’t. The “Bold New Chapter” makes financial sense. It ignores community impact.
Severance and Retraining: Insufficient Armor
Macy’s offers limited severance. It’s typically two to three weeks’ pay per year worked. The company points workers toward retraining programs. Workers can learn healthcare, manufacturing, or tech skills. But the math is harsh.
A $17-per-hour warehouse worker becomes a nursing assistant earning $16 per hour. IT training takes 12 to 24 months and costs money. Families with mortgages due in 30 days can’t wait. Workers see abandonment, not opportunity.
Market Uncertainty and Skepticism
Wall Street investors initially praised Macy’s cost cuts. But analysts spotted a problem. Macy’s sales grew only modestly despite $235 million in savings.
Can robots and efficiency replace lost customer traffic? Can they overcome changing shopping habits? Macy’s stock stays volatile. Some analysts worry. Closing distribution centers too fast might create shipping delays.
Connecticut’s pain serves as a business necessity. But the bet—that robots deliver profits—remains unproven and risky.
The Question Connecticut Cannot Escape
Connecticut faces a hard truth: 993 workers have lost their jobs. The state has no real plan for automation-era distribution centers. Retrained workers will find jobs, but at lower pay. Some families will move out of state. Empty Macy’s buildings might become cheaper logistics operations.
Connecticut’s workforce keeps shrinking. The population ages. The state loses an advantage. Walgreens, Edgewell, and now Macy’s show a pattern. Will another major distribution center close within two years? That’s the question haunting Connecticut.
Sources:
- Connecticut Department of Labor, January 2026 Labor Situation Report, January 2026
- Yahoo Finance, Macy’s to close Cheshire distribution centers cutting nearly 1000 Connecticut jobs, January 14, 2026
- Supply Chain Dive, Macy’s eyes $100M in savings from streamlined supply chain, March 14, 2024
- Connecticut Business & Industry Association, September Job Losses Highlight State’s Economic Challenges, December 10, 2025
- Connecticut Examiner, State Loses 5700 Jobs in September as Labor Market Weakens, December 2025
- Connecticut Mirror, Connecticut labor force decline report, September 2025