Connecticut Job Market Sparks Worry For 2005

NEW HAVEN (AP) — A sluggish job market in Connecticut in 2004 is raising concerns that something is amiss in a state long synonymous with wealth.

Connecticut’s job losses in recent years have been more severe and lasted longer than the nation, experts say. The state’s job recovery also has been weak.

The problem continued in 2004 with a series of layoffs at major employers known for products to ease pain and suffering, from Bayer Pharmaceuticals Corp in West Haven to insurers in Hartford and Purdue Pharma in Stamford. Officials have become so concerned that a jobs summit is planned in January.

“I’d say the job picture in Connecticut right now is stagnant,” said Pete Gioia, economist with the Connecticut Business and Industry Association. “There is no way to sugarcoat this. We have a problem here.”

In September, a statewide child advocacy group warned that the continued job losses and an expanding wage gap are threatening the state’s economy. The annual State of Working Connecticut report, compiled by Connecticut Voices for Children, determined that low-wage workers are losing ground financially, finding it more difficult to adequately support a family in this state.

Connecticut’s economy has been powered for years by a variety of engines, traditionally the insurance industry, financial services, the military and, more recently, the world’s largest Indian gambling casinos. But some experts do not see a new engine revving up these days.

“There’s not a whole lot of momentum for the creation of new jobs,” said Edward Deak, an economics professor at Fairfield University.

He is starting to doubt his own forecast for modest job growth next year of 21,000 jobs. Connecticut lost 3.6 percent of its jobs, or about 61,000 jobs, over the past four years through July, worse than the national job loss rate of 2.1 percent over a shorter span, Mr Deak said.

Experts blame Connecticut’s high costs and growing traffic congestion for the weak job performance.

“It’s very difficult to attract companies to Connecticut or encourage them to expand when you can’t get from one point to another in the state on a reliable basis,” Mr Deak said.

Another concern is the state’s so-called brain drain, with college students often moving out of state.

In its latest report on Monday, the state Department of Labor said Connecticut’s unemployment rate increased to 4.7 percent, up from 4.6 percent in October. The state added 2,700 jobs in November, but the labor pool grew as more people looked for work, officials said.

Through November, Connecticut added only 7,400 jobs in 2004, said John Tirinzonie, the state labor economist. At that pace, he said he does not expect the state to reach the forecast of 10,000 to 12,000 new jobs for 2004.

“I would say its weak at best,” Mr Tirinzonie said. “Anemic — that’s probably the best way to describe it.”

Connecticut’s job gains represent less than one percent of the work force, lagging the 1.4 percent job gains nationally this year.

Despite the weak job performance, Connecticut’s unemployment rate is still below the national rate of 5.4 percent. That is because the state’s unemployment rate had fallen as low as 2.1 percent in 2000.

Mr Tirinzonie said he is encouraged because November marked the fourth straight month of job gains, a first in four years. Connecticut’s manufacturing sector gained jobs this year for the first time in several years, he said.

He is standing by his forecast of 12,000 to 15,000 new jobs next year. Despite the worries, Connecticut is still home to strong industries such as biotechnology and pharmaceuticals, while European investment in the state has created well-paying jobs, he said.

“I think we have a lot going for us in this state,” Mr Tirinzonie said, acknowledging he is called the eternal optimist at work.