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Economic forecasters believe Connecticut could lose 24,000 jobs in the next two years, as a decline in the housing market continues to affect the whole economy.

This latest outlook from UConn’s Center for Economic Analysis is considerably more pessimistic than previous forecasts, calling for decelerating growth through 2008, and then only a slow uptick in the following year.  While manufacturing might continue to benefit from the weak dollar, and financial services also have a reasonable outlook, forecasters say the state will be dragged down by continued weakening in the housing market, resulting in layoffs in construction and among Connecticut’s municipal workers.  

Report author Peter Gunther says there are bright spots – he says Connecticut is well positioned to benefit from the demand for greener fuels.

"When you think about the kinds of technologies that are involved there, Connecticut’s really pretty well situated to take advantage of some of the new work that’s coming in in terms of bio-oils and solar, and as a result curb some of the present problems facing the Connecticut economy."

Gunther says the state must be proactive in promoting private investment in fields that will help stimulate job growth.