A new report showed Connecticut's post-pandemic job growth lags behind the rest of the nation.
The State of Working Connecticut report found personal income, gross domestic product and job growth are all falling behind the U.S. averages. Though low-wage workers saw significant wage growth to help with their cost of living, post-pandemic inflation has eroded the gains.
Patrick O'Brien, research and policy director at Connecticut Voices for Children and the report's author, said one reason for the state's slow job growth is its overall unaffordability.
"You need to make the state more affordable for families to stay here and grow here and for also some families to move here," O'Brien urged. "You could think about, you know, addressing affordable housing, affordable child care, a child tax credit. Those types of things that make it more affordable for families to live in the state."
Slower economic growth can also be attributed to the lagging recovery of public-sector jobs, which plummeted around the start of the pandemic. But nationwide, such jobs returned to pre-pandemic levels around mid-2022. Connecticut is close to the national average but has not reached pre-pandemic levels. The report showed building up the public-sector workforce could also significantly reduce wage inequality.
The report recommended ending the subminimum wage, limiting noncompete agreements and improving early childhood education to bolster Connecticut's economy. Bringing the changes to fruition will not be easy. O'Brien noted budget controls could prevent such policies from being enacted.
"With the fiscal controls and our tight budget, it's hard to get funding to increase individual programs," O'Brien pointed out. "Because there's a spending cap, that money tends to have to come from somewhere else."
He added the state has tried to reduce government spending by not filling public-sector jobs. But it can negatively affect the state budget, because it slows personal income growth and income tax collection. O'Brien thinks if nothing is done, Connecticut will remain on the same trajectory of repressed economic growth.
Disclosure: Connecticut Voices for Children contributes to our fund for reporting on Budget Policy and Priorities, Children's Issues, Education, and Juvenile Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
There is promising news at the national level and in Minnesota in trying to lower workplace injuries and illnesses. A key labor organization is happy with the results but worries about the obstacles some workers face in being compensated.
Minnesota's Department of Labor and Industry's latest survey data show the state's rate for nonfatal workplace injuries decreased last year by almost a full percentage point, to 2.9%, which mirrors similar movement with the national rate.
Brad Lehto, secretary-treasurer of the Minnesota AFL-CIO, said the numbers are encouraging but other findings stand out.
"It's good that injuries are down," Lehto acknowledged. "But are people getting benefits is the question."
For injured workers, Lehto feels the levels of benefit claims denied by insurance companies are too elevated. He noted it is complicated because of all the "third-party experts" hired by employers for such cases. Lehto wants more transparency, given all the hoops people have to jump through to file claims, including gathering documents. He does credit some employers, including bigger chains like Costco, for making a serious effort to protect workers.
Health care settings, including state government hospitals, are among the workplaces with higher numbers of reported injuries. Lehto pointed out it is not surprising.
"They're being asked to take care of too many patients and work too many hours," Lehto observed. "You're going to get hurt at that point."
He added a legislative push last year to address staffing levels for nurses stalled at the end of the session. As for worker's comp denial rates, they began to rise after the start of the pandemic, reaching 24% in 2021, excluding non-COVID cases. The numbers began to fall in subsequent years.
Disclosure: The Minnesota AFL-CIO contributes to our fund for reporting on Budget Policy and Priorities, Civil Rights, Livable Wages/Working Families, and Social Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Immigrant New Yorkers want lawmakers to create an unemployment bridge program.
It would support unemployed workers who are ineligible for state unemployment insurance by establishing a $500 million fund, providing monthly compensation equal to what other workers receive.
Beyond undocumented people, freelancers and self-employed workers would also be eligible.
Sol Freire Figueroa, labor campaigns director with New York Communities for Change, said this will take a lot of political will.
"Right now in the current environment, the immigration conversation has been a topic that not everyone is willing to talk about, or take care of," said Figueroa. "There are many things the immigrant community needs, and we need the willingness of leadership to stand up for the immigrant community."
While the program has statewide support from lawmakers, it's still a budding concept.
A bill establishing the program was brought before the state Legislature, but failed to advance out of committee.
Figueroa said the biggest source of opposition centers around its potential funding source - a digital ad tax from companies with annual gross revenue from these services of $100 million or more.
While the tax is being debated, it's expected to raise $1 billion for New York, with the unemployment bridge program costing half that.
The program stems from the pandemic-era Excluded Workers Fund which filled a similar role. Figueroa said given how the economy has changed, this program has been a long time coming.
"Considering we're living in an economy where we have more and more workers accessing jobs like working at Uber, or a delivery worker," said Figueroa. "They should be able to access this type of benefit as they are putting the hours in, they are putting the work in."
Once the bill passes the state Legislature and is signed by the governor, Figueroa estimated it could take a year to get the program started.
get more stories like this via email
Federal investments are helping the city of Boston develop greater workforce training programs.
The city received $23 million in 2022 to develop pathways into quality child care, health care and energy jobs.
Trinh Nguyen, chief of worker empowerment for the City of Boston, said city officials knew they needed to focus on getting communities of color and women into well-paying careers.
"We also knew that there are very motivated, talented Boston residents who don't have a bachelor's degree that can meet employers' demand up and down the supply chain," Nguyen explained.
Nguyen pointed out about 2,800 Greater Boston residents have enrolled in the workforce training program. Already, more than 1,000 graduates have secured employment with benefits and opportunities for upward mobility.
In Boston, a significant focus has been child care, a sector in which young people are not filling positions quickly enough as more experienced providers retire.
Nguyen noted too often young people simply do not have the information they need to learn about training and licensure opportunities or where a job in child care could ultimately lead.
"You really have to go into the community and really inform about career pathways in child care," Nguyen observed. "We want to make sure that we have child care workers that reflect the diversity of the clientele for child care."
Nguyen added a stable and secure child care workforce is crucial to the region's future economic growth and that city officials are working with more than 100 employers to secure well-paid jobs for training program graduates. The training is made possible through the federal Good Jobs Challenge program, created through the American Rescue Plan.
get more stories like this via email