Connecticut Ranks Itself 38th for Economic Growth
Even by its own measure, Connecticut continues to lag behind most of the country in economic growth.
The November issue of the Connecticut Economic Digest features a report by economists at two state agencies that ranks Connecticut’s economy at 38th overall in the U.S.
Just 12 states experienced weaker economic growth than Connecticut last year, according to the Department of Labor and state Department of Economic and Community Development’s report.
(CNBC ranked the state’s economy 43rd in the 2016 version of its annual America’s Top States for Business study.)
The report features a newly developed State Economic Index that measures four evenly weighted factors: employment, unemployment, wages, and newly formed businesses.
Connecticut, with a score of 118.9 for 2015, trailed the national average of 124.1, and also trailed all of New England except Vermont, which ranked 45th with a score of 116.8.
Neighboring states of New York (121.1), New Jersey (119.7), Massachusetts (119.5) and New Hampshire (121.2) were among the 37 states ahead of Connecticut.
At 137.9, Colorado led all states, while New Mexico was last at 107.2.
The report is just the latest in a series of studies that show Connecticut has a long way to go in the race for economic excellence.
Its authors concluded that “Connecticut’s 38th place last year leaves some room for improvement,” another reminder to policymakers and candidates that the economy must be their top priority.
Connecticut ranked 46th in job creation in 2015 with 0.6% growth, well below the national average of 2%.
The report’s other findings include:
- Connecticut's net business formation was 1.5% in 2015, slower than the national rate of 2%.
- Connecticut ranked 46th in job creation in 2015 with a 0.6% growth rate, well below the national average of 2%.
- Connecticut ranked 43rd in job growth from 2011 to 2015 at 4.2%. The national average was 9.1%.
- Connecticut ranked 35th in wage growth from 2014 to 2015, up 2.5%. The national average was 3.1%.
- Connecticut’s income continues to rank high--it was fourth nationwide in 2015 with an average annual pay of $65,516.
Pete Gioia is an economist with CBIA. Follow him on Twitter @CTEconomist.
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