Business & Tech

Connecticut Incomes Lag Behind Nation

Personal income in this state grew by just 2 percent in 2012.

This story was written and reported by Associate Regional Editor Eileen McNamara.

Personal income among all Connecticut residents increased just 2 percent in 2012, the second-lowest growth of personal income in the country. Only South Dakota fared worse last year, with negative .02 percent in personal income growth.

Connecticut's poor performance is attributed, in part, to the state’s finance and insurance sector industries, which are still trying to recover from the Great Recession that started in 2007, according to the website Hartford Business.com, the online version of the Hartford Business Journal.

Income growth in all Connecticut industries fell below the national average, but the falloff in the state’s finance and insurance sectors was greater, the website states. Other sectors where personal income fell below the national average were manufacturing, state and local government, health care, construction, retail and professional services, the website states. Only three industries in 2012 were above the national average, company management, educational services and agriculture.

“Two percent personal income growth is pretty weak," Pete Gioia, vice president and economist for the Connecticut Business & Industry Association, told Hartford Business.com. "A lot of the economy depends on that personal income growth."

Connecticut needs to create new jobs in order to reduce the state’s unemployment backlog and boost the state’s personal incomes, he said. Without that growth, the economy will remain relatively stagnant, with poor growth in areas such as retail sales and the service industries.


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