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May 2008 — Vol. 86, No. 4

Myths vs. facts

(Page 2 of 5)

 

MYTH:

Most new jobs in Connecticut will be low-level service jobs.

FACT:

High-paying jobs dominate the state’s 20 fastest-growing occupations.

Sixty percent of the 20 fastest-growing occupations in Connecticut will require at least a bachelor’s or master’s degree and command annual salaries exceeding $75,000. Top-income-quartile jobs in Connecticut will grow 13% between 2000 and 2010, while the lowest-income-quartile jobs will grow only 9%. However, Connecticut is experiencing a skilled-worker shortage, which could weaken actual job growth. The state needs to address this problem and foster a business climate that promotes job creation.

Source: Connecticut Department of Labor

 

MYTH:

Corporations only make profits and do not invest in their workforce.

FACT:

Employee wages are high and on the rise in the state.

Between 2003 and 2006, the total compensation of employees in Connecticut grew 16.6%, from $99.72 billion to $116.3 billion. The state ranks first in the U.S. in average annual pay and earned an overall “A” grade for earnings and job quality in the “2007 Development Report Card for the States.”

Sources: Bureau of Economic Analysis, U.S. Department of Commerce; “2007 Development Report Card for the States,” Corporation for Enterprise Development

 

FACTORS AFFECTING ECONOMIC GROWTH

MYTH:

Employers can afford to pay for the rising cost of employee health benefits.

FACT:

Connecticut employers struggle to afford health care costs and also add new jobs.

Health insurance premiums in Connecticut have risen over 80% since 1995. Yet, more than 95% of CBIA members still provide health benefits to their full-time employees. But 68% say health care costs weigh heavily in their decisions about hiring workers. Nationwide, annual health care costs per employee nearly doubled in seven years, from about $4,000 in 2000 to nearly $8,000 in 2007. Employers have shouldered nearly all of the increase.

Sources: U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services, “Health Expenditures by State”; Hewitt Health Value Initiative; Kaiser Family Foundation, Employer Health Benefits 2006 Annual Survey; CBIA Annual Membership Survey, 2007

 

MYTH:

Employers don’t do enough to provide health care coverage for their employees.

FACT:

Connecticut employers are national leaders for employee health benefits.

The percentage of companies offering health insurance to employees has declined. Still, Connecticut received an overall grade of “A” and the No. 4 ranking from the “2007 Development Report Card for the States” for employer-provided health insurance. Ninety-one percent of Connecticut residents have health insurance, compared with 85% nationally. Of those with coverage in Connecticut, more than 68% obtain it through their employers, topping the U.S. average of 60%.

Sources: U.S. Department of Health and Human Services, Agency for Healthcare Research and Quality; U.S. Census Bureau, Health Insurance Coverage Status; U.S. Census Bureau, Current Population Survey 2006; Connecticut Office of Health Care Access; “2007 Development Report Card for the States,” Corporation for Enterprise Development; Kaiser Family Foundation Economic Policy Institute

 

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