Survey: Rising Costs, Worker Shortage Top Employer Concerns Ahead of Elections

09.17.2026

Media Center

Rising costs, a shrinking labor force, and a challenging policy environment are tempering Connecticut business leaders’ economic outlook, according to a new survey released today.

The 2026 Survey of Connecticut Businesses, produced by the CBIA Foundation for Economic Growth & Opportunity in conjunction with the University of New Hampshire Survey Center, captures business sentiment amid unprecedented uncertainty.

Nine in 10 employers report increased cost pressures, driven by rising healthcare, labor, energy, taxes, and regulatory compliance costs.

Released at the annual The Connecticut Economy conference in Hartford, the survey found that just 27% expect the state’s economy to grow over the next 12 months, with 44% projecting static conditions.

The lack of skilled workers was the main factor blocking growth for 25% of respondents—a plurality—followed by healthcare costs (18%) and unpredictable legislative decision-making (14%).

Connecticut’s labor force declined by 51,400 people in the 12 months through July, further challenging employers trying to fill more than 86,000 job openings.

“A shrinking labor force and persistent skills gaps are limiting Connecticut’s potential” said CBIA president and CEO Chris DiPentima, the president of the CBIA Foundation.

“If we want employers to grow and create jobs here, we must make the state more affordable and build a workforce system that meets the needs of tomorrow’s economy.”

Key Findings:

72% of businesses report difficulty finding and retaining workers, with skills gaps and the state’s high cost of living major factors

Only 9% believe the state’s business climate is improving, 52% say it’s static, and 38% say it’s declining

88% saw per-employee health insurance costs increase at their most recent renewal

54% say healthcare costs and accessibility should be the General Assembly’s top priority in 2027, with energy costs close behind at 52%

53% expect tariffs will negatively impact their operations in the next year, with 28% expecting no impact

70% of businesses turned a profit in 2025, 15% broke even, and 15% reported losses; 65% expect a profit in 2026

30% plan to expand their workforce over the next six months, while 8% expect a contraction

42% are using artificial intelligence in their operations, while 54% of non-users are unclear how to adopt it

Despite those challenges, Connecticut businesses remain resilient, with most reporting a profitable year through innovation and the adoption of new technologies.

DiPentima noted that while Connecticut’s economy grew 2.4% last year, the 12th-fastest rate in the nation, employers are dealing with an environment where costs are rising faster than can be absorbed.

“The survey was conducted on the heels of a General Assembly session that promised to deliver a more affordable Connecticut,” he said.

“It’s clear from the survey responses that the session did not deliver on that promise.

Growth Challenges

“Connecticut businesses have demonstrated that they can adapt, compete, and grow in times of extraordinary uncertainty.

“What they we need now are policy solutions that match that resilience and ambition.”

The survey was produced with the support of the accounting, tax, and advisory firm CBIZ, with Hartford office managing director Michael Brooder reviewing the results with a panel of business leaders at today’s conference

“Connecticut businesses continue to demonstrate remarkable resilience amid ongoing uncertainty,” Brooder said.

“However, rising healthcare and electricity costs are placing increasing pressure on employers, who have few options to absorb the steep increases.”

The University of New Hampshire Survey Center conducted the 2026 Survey of Connecticut Businesses on behalf of the CBIA Foundation. An invitation to participate was sent to more than 3,300 top executives throughout the state from June 2 to July 7, with a response rate of 11%.

Most surveyed firms are small businesses, with 70% employing less than 50 people, 15% employ 50 to 99 people, 7% employ between 100 and 249 people, and 7% employ more than 250 people.

Economic Indicators

To better understand where Connecticut’s economy stands and identify its strengths and challenges, the CBIA Foundation also today released an updated By the Numbers: Tracking Connecticut’s Economic Competitiveness.

The resource guide detailing key economic data points and trends was first launched in 2025 to establish economic competitiveness benchmarks.

The updated edition tracks how key indicators changed over the last year.

“Competitiveness is not measured by a single statistic, but by a state’s ability to improve over time while creating opportunities for employers and residents alike,” said CBIA Foundation director Dustin Nord.

The CBIA Foundation for Economic Growth & Opportunity is a 501(c)(3) organization created to address the evolving needs of Connecticut’s economy. The foundation’s primary goal is charting a course for sustained economic growth that drives further predictability and greater opportunity for all Connecticut residents.

CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Scott Beaulieu (860.244.1929).

The UNH Survey Center is an independent, non-partisan academic survey research organization and division of the UNH College of Liberal Arts. The Survey Center conducts web, mail, telephone, and intercept surveys, as well as focus groups and other qualitative research for university researchers, government agencies, public non-profit organizations, private businesses and media clients. Their senior staff have over 50 years experience in designing and conducting custom research on a broad range of political, social, health care, and other public policy issues.

By the Numbers: Tracking Connecticut’s Economic Competitiveness was made possible through the support of the Connecticut Business Roundtable, Connecticut Green Bank, and NDC Commercial Construction.