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May 2008 — Vol. 86, No. 4

Myths vs. facts

(Page 5 of 5)

 

OTHER ECONOMIC FACTORS

MYTH:

Global trade isn’t a significant part of Connecticut’s economy.

FACT:

Thirty-three percent of all Connecticut businesses are highly involved in international investment and trade.

Between 2006 and 2007, Connecticut’s annual exports grew 12.1%, to $13.72
billion. What’s more:

  • Sixty-four percent of manufacturers in Connecticut are involved in international trade.

  • In 2005, 6.9% of workers in Connecticut were employed by foreign-based companies with operations here.

  • Of the 4,572 companies that exported goods from Connecticut in 2005, 4,084 (89%) had fewer than 500 employees. These firms produced 26% of the state’s total exports that year.

  • Connecticut exports rose 43%, from $8.56 billion in 2004 to $12.24 billion in 2006. Most of our exports went to Canada ($1.93 billion), France ($1.22 billion) and Germany ($1.21 billion). Between 2002 and 2006, exports to Singapore grew the most — $432.4 million (106.2%).

  • In Connecticut, 43,800 manufacturing jobs were supported by exports in 2003 — 30,900 of them directly and 12,900 indirectly. And 27,500 nonmanufacturing jobs depended on manufactured exports, for a state total of 71,300 export-dependent jobs.

Sources: Connecticut Department of Economic and Community Development; Export.gov, “Connecticut: Exports, Jobs, and Foreign Investment, September 2006”; Export.gov, “Connecticut: Total Jobs Supported By Manufactured Exports, 2002”; 2006 CBIA/Blum Shapiro Survey of Connecticut Businesses

 

MYTH:

Immigration is not an important issue in Connecticut.

FACT:

Immigrants are vital to our economy.

Without immigrants, the state’s population (as recorded in the last Census) would have shrunk. The number of foreign-born workers here rose 36% from 2000 to 2006. The main fields of employment for these workers are management and professional (31.4%), service (22.6%), and sales and office (19.6%). In the 2006 CBIA/Blum Shapiro Survey of Connecticut Businesses:

  • Sixty-five percent of executives said immigrants play a significant role in the state’s economy.
  • More than three-quarters (76%) said the same about immigrants in the national economy.

Sources: Yale University, Immigration in Connecti-cut: A Growing Opportunity; Capps, Randy, et. al.; “Immigrants in Connecticut: Labor Market Experiences and Health Care Access,” The Urban Institute; 2006 CBIA/Blum Shapiro Survey of Connecticut Businesses

 

MYTH:

Connecticut is well-positioned in terms of its long-term financial obligations.

FACT:

The state has $54.2 billion in long-term obligations.

As of 2007, Connecticut’s long-term obligations (in billions) were:

 

Bonded indebtedness

 $14.4

State employee pensions

 $7.9*

Teachers’ pensions

 $6.9*

State employee post-retirement health and life insurance

 $21.7*

Teachers’ post-retirement health and life insurance

 $2.2*

GAPP deficit

$1.1

Total

$54.2

* Unfunded

  

 

Source: Connecticut Office of Policy and Management

 

 

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