Connecticut’s long-term unemployment rate is the fourth highest among all states, according to a new Labor Day weekend report on jobs and wages in the state. “The State of Working Connecticut 2010,” released by Connecticut Voices for Children, a research-based policy think tank, also finds that only the Health and Education job sector showed significant job growth during the current recession and that the continued health of this job sector may be threatened by the prospect of state budget cuts. Steep losses of middle-class jobs in the state as well as racial, ethnic, and gender wage gaps also limit economic opportunities, according to the report.

To restore broader economic opportunities and to help families through the recession, the report recommends that the state develop a focused and strategic economic plan, avoid severe state budget cuts that would worsen job losses, ramp up supports for unemployed families, and increase investments in education and worker training.

“To restore opportunity for Connecticut families, we need to maintain our supports for them until we can get Connecticut’s economy working again,” said Jamey Bell, Executive Director of Connecticut Voices for Children. “We can’t return to economic prosperity by undercutting supports for struggling families.”

Among the report’s findings:

· Long-term unemployment and underemployment rates indicate serious challenges for Connecticut’s economy. The long-term unemployment rate in Connecticut – the share of unemployed workers who have been out of work for 6 months or more, despite looking for work — is the fourth highest in the country at 37%. The underemployment rate – which includes the unemployed, part-time workers who want to work full-time, and discouraged workers who have stopped looking for work — is at a historic high for the state, at 14%.

· Only the Health and Education job sector experienced substantial job growth since the beginning of the recession, growing by 4.6% from March 2008 through 2010. Connecticut Voices expressed concern that the state’s only successful job sector may be threatened by state budget cuts, since this sector is heavily dependent on public sector investment.

· In recent years, middle-wage occupations have experienced the steepest job losses. This group of occupations, which include middle-class jobs such as carpenters, truck drivers, and bookkeepers, have lost 6.8% of their positions between 2006 and 2009. Connecticut Voices suggested this was a troubling loss of occupations that have traditionally provided living wages. Only the highest 20% of occupations by wage, including dentists, lawyers, and registered nurses, increased their number of jobs, by 5.6% since 2006.

· Racial, ethnic, and gender gaps in wages are much wider in Connecticut than among workers in other states. The median wage for Connecticut’s African Americans was only 62% of the white median wage in 2009, compared to 78% for African Americans nationally. Hispanics earned only 60% of the median wage of whites in the state, compared to 70% nationally. Connecticut also has the sixth worst gender gap in wages among all states, with women earning 76% of men’s median wages, compared to 82% nationally.

“The pain of this recession has been concentrated among low- and middle-wage workers, while the gains of the previous economic expansion were primarily enjoyed by high-wage workers,” said Joachim Hero, Research Associate at Connecticut Voices for Children and co-author of the report. “Connecticut should aggressively pursue an economic development strategy that benefits all workers.”

Connecticut Voices also released a supplemental report, “State of Working Connecticut 2010: Trends in Local Labor Market Areas,” which summarized local wage, unemployment, and business trends in Connecticut’s nine Labor Market Areas: Bridgeport-Stamford, Danbury, Enfield, Hartford, New Haven, Norwich-New London, Torrington, Waterbury, and Willimantic-Danielson.

“Wage and business trends can vary in local job markets,” said Orlando Rodriguez, Senior Policy Fellow at Connecticut Voices for Children and co-author of the report. “State and local policymakers should tailor their economic development strategies to regional economic conditions.”

To help restore broader economic opportunities and to help families through the recession, the report recommends that Connecticut:

· Avoid more state budget cuts that would undermine the economy and weaken supports for working families and the unemployed. Just as the needs of families are rising, the revenues available to support them have declined. Connecticut Voices called for a balanced approach to reducing the state budget deficit that includes new revenues, to avoid deep cuts that would cost jobs and delay the economic recovery.

· Establish a clear economic development strategy for the state that includes closing the achievement gaps in Connecticut’s schools and critically evaluating the success of the state’s economic development initiatives, including its growing use of business tax credits.

· Ramp up supports for the families of lower wage workers and workers who have lost their jobs, including health insurance, housing, and child care supports.

· Expand our public investment in education and training. Recent economic analyses indicate that direct investments in education, including early childhood, K-12 and higher education, can be effective in creating jobs and improving opportunities for Connecticut residents.

The State of Working Connecticut is released each year in partnership with the Economic Policy Institute, an economic think tank based in Washington, D.C. Connecticut Voices for Children is a statewide, research and policy organization that works to advance strategic public investment and wise public policies to benefit our state’s children, youth and families

Jonathan Kantrowitz

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Connecticut Will be Unable to Expand Successful Jobs Programs If U.S. Senate Fails to Extend TANF Emergency Fund

September 3, 2010 at 9:34 am by Jonathan Kantrowitz

A greatly expanded Connecticut subsidized employment program, which has provided jobs for over 6,000 low-income parents and youth, will never reach its full potential unless Congress this fall extends the federal program that funded it, according to a new report from the Center on Budget and Policy Priorities.

The employment program uses federal dollars provided through the Temporary Assistance for Needy Families (TANF), which President Obama and Congress created in last year’s Recovery Act, to create subsidized jobs for low-income Connecticut residents with children and working-age youth who otherwise would be unemployed. Many of the job placements are with private-sector businesses and some already have led to permanent, unsubsidized jobs.

One worker who has benefited from the program is Sheila Barnes. Barnes was employed by a health care agency, on a per diem basis, sometimes working as little as 12 hours a week before a new subsidized job opportunity came along. Since June, Barnes has been working at Charter Oak Square Apartments, a leasing agency with both residential and commercial space. She uses her previously attained customer services skills in assisting residents and answering leasing related inquiries, and says she has learned a lot in a short period of time.

While her 12-week subsidized opportunity will come to an end, Barnes plans to study for her Licensed Practical Nurse (LPN) degree beginning in January and her five-year goal is to become a registered nurse. She does not know if Charter Oak will be able to hire her when the subsidy ends, but says that she feels that having the reference and experience from Charter Oak on her resume goes a long way in building her career.

“This opportunity has been amazing,” said Barnes. “I wish the program was longer so that I could gain even more experience.”

The federal TANF Emergency Fund that pays for the subsidized employment program is set to expire on September 30 unless Congress extends it. Connecticut will continue its program, but with fewer resources available will be limited in the number of people it can serve in the program.

“This program provided the catalyst for multiple state and local government agencies, philanthropy and non-profits to come together to create valuable job opportunities for our most vulnerable families,” said Elaine Zimmerman, executive director of the Connecticut Commission on Children.

At 8.9 percent Connecticut’s unemployment rate is somewhat below the national average, but many people remain unemployed and increasing numbers have been unemployed for an extended period. Another bleak monthly national employment report is due out tomorrow from the Department of Labor.

“It makes no sense to shut down an effective jobs program and put more people out of work right now,” said LaDonna Pavetti, co-author of the report. “It’s the opposite of what the country needs: jobs will evaporate, unemployed mothers and fathers will struggle to make ends meet, and it will add more strain to the already fragile economic recovery.”

The House has voted twice to extend the TANF Emergency Fund, which has placed an estimated 250,000 low-income parents and youth in subsidized private- or public-sector jobs nationwide. But, the Senate has yet to act. The costs of the House extensions were fully offset and would not add to the deficit.

The Emergency Fund was included in last year’s Recovery Act with the purpose of providing states with extra resources to meet the increased need for assistance during a recession. The Fund gives states the ability to put money in the hands of people who will spend it, which helps lessen the damage that the recession would have otherwise done to the economy and especially to vulnerable populations.

Thirty-seven states operate subsidized employment programs using these funds. Yet many of the programs — including most of the largest ones — will have to close their doors on September 30 if Congress doesn’t extend the fund; others plan to greatly scale back operations.