Government Issues and Politics
Insurance and Employee Benefits
Business and Economic Info
Human Resources and Safety
Education Policy and Practice
Training and Consulting Services
Welcome to CBIA's Training and Consulting site!
Small Business Human Resources Workforce Development Your Questions Answered Success Stories

May 2008 — Vol. 86, No. 4

COVER STORY

Myths vs. facts

Jobs, the economy and doing business in Connecticut

(Page 1 of 5)

 

Related article:

A healthy Connecticut economy is good for the people and communities of the state in many significant ways. It provides more and better jobs, a higher quality of life, and the promise of new opportunities for the future. Ultimately, a strong business climate also generates the revenue that enables state and local governments to provide critically needed social services.

What are the characteristics of a healthy economy? And how can we know if Connecticut has an economic climate that encourages businesses to stay, invest and grow here?

CBIA’s updated Myths vs. Facts, excerpted on the following pages, is a candid and perhaps surprising look at some of the key issues and measures affecting business in Connecticut, including health care costs, energy, education, taxes and global trade. The association compiled this information to help state policymakers, taxpayers and others gain a clearer understanding of the contributions made by Connecticut businesses — and the critical challenges they confront in today’s highly competitive and global economy.

The entire Myths vs. Facts document is available at cbia.com.

 

ECONOMY, JOBS AND WAGES

MYTH:

Connecticut’s economy is very weak and declining.

FACT:

Connecticut’s structural economy is still strong. Gross state product (GSP) grew 48.2% from 1997 to 2006. But now there is cause for concern.

Connecticut’s GSP was $137.7 billion in 1997 and grew to $204.1 billion by 2006 — a 48.2% increase. Although our economy grew 1.9% from 2005 to 2006, that was well behind the national average (2.9%). How the current national economic woes will affect Connecticut is not yet clear. With that in mind, it’s especially urgent for the state to adopt policies that encourage economic growth.

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

 

MYTH:

Job opportunities are scarce in Connecticut.

FACT:

Connecticut is expected to add 150,000 new jobs in the coming years, despite some short-term job losses.

The state Labor Department projects Connecticut’s job market will grow 8.5% by 2014, adding 150,000 new jobs. But an additional 420,000 workers will be needed to replace those who retire or leave the workforce for other reasons. While Connecticut added 118,100 jobs between 1996 and 2006, it has lagged the U.S. in job creation since the last recession.

Sources: Bureau of Labor Statistics; Connecticut’s Industries and Occupations, 2014 Forecast, Connecticut Department of Labor; CBIA Membership Survey

 

MYTH:

Connecticut businesses don’t pay their fair share in taxes.

FACT:

State businesses pay a substantial amount in many types of taxes.

People who say businesses don’t pay enough taxes usually cite a single tax — the corporate income tax. But businesses pay billions of dollars a year in various state taxes, fees and assessments as well as local property taxes.

Examples of the more than 600 different business fees in Connecticut include fees for occupational licenses, commercial vehicles, commercial license plates and environmental permits.

 

Go to Page 1 | 2 | 3 | 4 | 5