There may now be signs that the recovery is underway, but economists warn that Connecticut could still lose many more jobs in coming months.
This latest forecast from UConn’s Center for Economic Analysis says the green shoots appearing around the country are real, but that they won’t necessarily translate into a recovery in employment. In fact, the report calls for the state to lose another 35,000 jobs over the next 12 months, taking employment back to below 1990 levels. According to the analysis, any recovery in employment will be dampened by state budget cuts and by continued weakness in housing construction.
Forecast author Peter Gunther says because fewer people are retiring, there are some groups that are being hit disproportionately hard.
"Unemployment rate are particularly high among the youngest people in the labor force aged 16 through to 24 where they’re as high as 17%, and those who self-identify as African Americans where the rate’s about 15.3%."
The report says the state could be doing much more to mitigate the fall off in jobs, leveraging projects like the expansion of the UConn Health Center, and attracting private investment by bolstering tax credits.