The University of Connecticut has released the latest edition of its economics quarterly. It takes a close look at the impact of the financial crisis in Connecticut, and what it means for jobs in the state. The picture on the front of the new edition of the quarterly review says it all: a stack of $100 bills melting down into worthless drops.
Editor Steven Lanza says Connecticut's concentration of financial sector jobs means it will be among the states hardest hit by job cuts in financial services. And that will spread throughout the economy.
"This recession certainly holds the prospect of going much deeper and lasting much longer than market corrections we've been used to."
Lanza estimates that every one of the financial jobs lost in the state could take another two jobs with it. And that only includes Connecticut jobs - and doesn't account for any cuts for the 25,000 state residents who have financial jobs in New York.
The silver lining, he says, is that Connecticut was faring better than the national economy through much of this year. And state exports have expanded by double-digits over the last three years. The increasing value of the dollar, though, could stem that growth.
"You have a slowing economy. You have our goods that all of a sudden look a lot more expensive than it did before, and my guess is the export sector is going to take a hit."
One of the economic forecasts projects Connecticut economy will continue to deteriorate through next year, and possibly through 2010. As many as 42,000 jobs could be eliminated.