In its economic outlook for the coming year, the January 2007 Connecticut Economic Digest predicts sluggish growth for the state in employment and population and slower growth in median income and gross state product. Average incomes, however, are expected to show moderate gains.
The anticipated slow growth in employment is due, in part, to continuing declines in manufacturing employment – a trend that many other states are also experiencing. Another factor is that manufacturing processes that once required Connecticut’s higher skilled labor force have become more automated, and have moved to areas with lower labor costs.
The manufacturing industry in Connecticut is diverse, but the state is known for the production of transportation equipment – including jet engines, helicopters and nuclear submarines – as well as metalworking, electronics and plastics.
Finance, insurance, and real estate play a vital role in the Connecticut economy. Over 100 insurance companies are headquartered in the state. Financial services once dominated Hartford, but now a wave of large hedge fund companies have established headquarters on the New York border around Greenwich.
The Connecticut Economic Digest is published monthly by the Department of Labor and the Department of Economic & Community Development. In addition to analyses, commentary, and outlooks for the state’s economy and labor market – in general or by sector – the Economic Digest often provides a detailed look at a particular municipality, or profiles a specific occupation.