Connecticut’s workforce shrank in 2025. Between January and November, the labor force fell by 19,600 people, while the national workforce grew by 1.9 percent. Retirements, people moving away, and federal immigration rules all played a part. About one in five workers in the state was born outside the United States. These trends added pressure to many parts of the economy.
In September 2025, the state lost 5,700 jobs in a single month, one of its weakest recent showings. Business leaders described those losses as “staggering.” From November 2024 to November 2025, Connecticut added only 1,800 jobs, for about 0.1 percent growth. Over the same period, the nation grew at about 0.6 percent.
Several large employers changed their operations in the state. Walgreens shut down a distribution center in Killingly in May 2024, and 322 jobs were lost. Edgewell Personal Care announced plans to close its Schick plant in Milford by the end of 2027, affecting 293 workers. These moves fit a wider shift in retail and manufacturing work.
Large retailers now rely more on online sales and fast shipping. Customers expect quick delivery and easy returns. Warehouse jobs often involve hard physical work and long hours, which can make hiring difficult. At the same time, automation is cheaper and more capable. Robots, guided vehicles, and software can sort and move goods around the clock.
Macy’s Closures in Cheshire and Beyond
Macy’s decided to close two distribution centers in Cheshire, Connecticut. A formal notice was sent to state officials on January 13, 2026. The centers are at 475 Knotter Drive and 181 West Johnson Avenue. Together, they will cut 993 jobs by August 2026. Macy’s calls the plan part of its “Bold New Chapter” strategy.
This effort aims to save about 235,000,000 dollars each year by 2026, after saving about 100,000,000 dollars in 2024. Macy’s has used the plan to close weaker stores, implement automation, and upgrade its inventory systems. The company also opened a large, modern fulfillment center in North Carolina to handle more online orders.
Macy’s has worked in Cheshire since 1986 and has been one of the town’s major employers. The shutdown will happen in stages. The night shift will end on March 14. Part‑time roles will end on April 4. Weekend jobs will stop on August 1, and the day shift will end on August 29. A smaller crew will remain until April 2027 to finish the building closures.
Macy’s says warehouse workers usually earn between $15 and $18 per hour, with higher pay for operators and supervisors. Many local renters pay more than $1,400 per month for a one‑bedroom apartment, so quick re‑employment is important. Macy’s has promised transition support and some transfer options, but transfers often require moving to another state.
Wider Impacts, Worker Options, and Open Questions
The Cheshire closures are part of a broader pattern for Macy’s. The company announced that its Tulsa, Oklahoma, fulfillment center will close in spring 2026, affecting about 279 workers. In South Windsor, Connecticut, 57 more Macy’s jobs will be cut. In total, more than 1,050 jobs will disappear at the company’s Connecticut sites.
Macy’s describes these steps as necessary to stay competitive in retail. Union groups, including the International Brotherhood of Teamsters, have warned that automation can remove jobs faster than workers can retrain. In Connecticut, labor advocates have limited tools to change closure dates or expand severance benefits.
Macy’s says severance packages usually give two to three weeks of pay for each year an employee has worked. The company also directs people to training programs in fields such as health care, manufacturing, and technology. Training for roles such as nursing assistant or basic IT support can take from 12 to 24 months and may cost money.
During that time, workers still have to pay rent and other bills. The state continues to review tax rules, infrastructure, and workforce programs to draw and keep employers. Analysts in financial markets welcomed Macy’s cost savings but raised concerns. Sales growth has been modest, and there are questions about whether closing many sites might slow deliveries or hurt the customer experience in the long run.
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