Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Archive for January 23rd, 2013

Connecticut had the fastest shrinking labor force in 2012

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New Haven-based economist Donald Klepper-Smith crunched some numbers on the labor force and found Connecticut ranked first in the nation in both the total number of people who quit the labor force and the percentage decline in workers and available workers.

The labor force is a technical measure that includes all people who are employed and all people actively looking for a job.

“We’re moving in the wrong direction and we’re moving there fast,” Klepper-Smith said by phone Wednesday. He said this data should have the state rethinking its policies and trying to understand what it can do to help reverse this trend.

In 2012, according to U.S. Bureau of Labor Statistic data Klepper-Smith reviewed, Connecticut’s labor force shrunk 2.68 percent, losing 51,130 people. That’s like having the entire population of Milford no longer engaged in work.

Klepper-Smith said a variety of factors are contributing to the loss of workers in Connecticut, including a rise in discouraged workers who abandon the hunt for jobs after being unemployed, people moving out of the state, working in the underground economy and people retiring.

The five states with the largest drops in labor force in 2012

1. Connecticut 51,130

2. Missouri 47,815

3. Indiana 44,349

4. Oregon 39,073

5. Ohio 38,301

Top five states for labor force growth in 2012

1. Pennsylvania 184,149

2. Texas 127,602

3. New York 92,889

4. North Carolina 63,619

5. Illinois 63,595

Sikorsky shows improvement in fourth quarter

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A Sikorsky S-76 D in flight. The company's new commercial helicopter is expected to help lift sales

Sales increased three percent and Stratford-based Sikorsky Aircraft delivered 18 more aircraft in the fourth quarter of 2012 compared to the same period a year ago.

The helicopter maker’s parent company, United Technologies said during a conference call with analysts that Sikorsky had sales of $2.17 billion in the quarter, but operating profit was down 20 percent from a year ago, partly due to restructuring costs. UTC said Sikorsky’s net sales for the year were $6.7 billion, down from $7.3 billion.

Sikorsky delivered 77 military helicopters in the fourth quarter of 2012 compared to 66 a year ago and its commercial segment delivered 14 aircraft, up two from the fourth quarter of 2011. Total deliveries were down for the year, as the previous three quarters didn’t keep pace with 2011.

UTC as a whole, which includes Otis Elevator, Pratt & Whitney, UTC Climate Controls nee Carrier, and UTC Aerospace nee Hamilton, said net income attributable to common shareowners of $4.8 billion, and earnings per share of $5.35 and both essentially flat versus prior year.

But profit at Hartford-based UTC was up 55 percent, aided by sales of legacy Hamilton industrial businesses, which were not seen as a good fit for the UTC Aerospace division, which includes Goodrich.

Shares of UTC were up 56 cents to $88.03 in morning trading and set a new 52-week high.