Connecticut Wages Grew 4.4% in 2022
Average annual salaries jumped 4.4% in Connecticut last year, the second largest increase over the last decade.
Connecticut workers earned an average $81,237 in 2022, fifth highest in the country, according to a new report from the state Department of Labor and Department of Economic and Community Development.
Massachusetts workers earned the highest average wage ($89,731), followed by New York ($89,564), California ($84,376), and Washington state ($83,987).
Nationally, average wages increased 3.5% to $69,985, ranging from a high of 6.8% in Idaho ($54,188) to a 1.6% decline in California, the only state where wages shrank.
While Mississippi workers saw a 5.5% increase, they remain the country’s lowest paid ($47,420), followed by West Virginia ($53,172; 5.3%), Oklahoma ($53,989; 5.2%), Arkansas ($54,012; 4.8%), and South Dakota ($54,057; 5.5%).
Maine led the New England region in percentage growth, with wages rising 6.4% to $58,132, followed by Vermont (5.8%; $59,584), Connecticut, Rhode Island (3.6%; $64,501), Massachusetts (2.3%), and New Hampshire (0.2%; $72,217).
|Sector||Average Annual Salary||% Change (from 2021)|
|Administration & waste management||$60,747||12.5%|
|Accommodation & food services||$28,491||6.4%|
|Finance & insurance||$207,788||6.3%|
|Healthcare & social services||$63,741||4.8%|
|Transportation & warehousing||$52,693||4.6%|
|Arts, entertainment, recreation||$37,088||2.8%|
Average annual salaries in Connecticut have increased 30.8% since 2012, marked by a 7.9% jump in 2020.
Private sector salaries grew 4.5% to $82,373 last year, while state government employees saw a 7.3% increase to $82,757.
All industry sectors except information saw gains in 2022, with administration and waste management salaries growing 12.5%, the largest percentage increase of any sector.
Information sector wages declined 3.1% to $145,454, with a 17.8% drop in the telecommunications subsector.
Finance and insurance workers earned an average $207,788 last year, the highest of any sector.
CBIA president and CEO Chris DiPentima said Connecticut workers are among the most highly skilled and productive in the world, “which is reflected in our top five national wage rank.”
“The big growth in salaries is no surprise either, given the pressure from inflation, the labor shortage, and employees’ post-pandemic expectations,” he said.
“In addition, Connecticut’s cost of living is one of the highest in the country, which also impacts salary growth.”
Employee retention and hiring were the top investment priorities for employers last year according to CBIA’s 2022 Survey of Connecticut Businesses.
Fifty-eight percent of surveyed employers increased salaries, 24% paid more bonuses, 15% increased vacation and paid time off, 12% implemented remote work, 11% made hours more flexible, and 10% enhanced insurance and health benefits.
DiPentima said those investments and evolving workplace policies were reflected in the state’s voluntary quits rate, which is among the 10th lowest in the country.
“Turnover in Connecticut workplaces is among the lowest in the country, testament to how employers have responded to the challenges of the past few years,” he said.
Labor Force Declines
However, despite record job openings over the past year, the state’s ongoing labor force losses continue to threaten job and economic growth.
Connecticut’s labor force—the number of employed plus those actively looking for work—declined by 39,660 people (-2%) between June 2022 and June 2023.
That decline represent the largest percentage loss in the region, while the U.S. labor force grew 1.4% over the same period.
As of May, Connecticut had 85,000 job openings—up 21% from pre-pandemic levels—with not enough workers to fill those positions.
“If every unemployed Connecticut resident was hired tomorrow, we’d still have almost 15,000 unfilled positions,” DiPentima said.
“Solving this crisis means reversing population trends of the past decade by making the state more affordable, increasing housing inventory, improving the childcare system, and expanding career opportunities for all residents.
“Job growth is essential for building a robust, vibrant economy and we must address those structural factors, many of which predate the pandemic, that are driving the labor shortage.”
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