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More Job Losses Loom
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Business New Haven
6/9/2003
By: BNH
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It may take Connecticut three or four more years to regain the jobs lost during the current recession, according to a forecast released June 5 by the New England Economic Project. And the state could lose an additional 10,000 jobs before bottoming out with an overall drop of about 55,000, according to Fairfield University economist Edward J. Deak, who prepared the report for the nonprofit group.
Deak says Connecticut will trail the national recovery by six months because of higher state and local taxes, more layoffs and rising energy costs. For the rest of this year and most of 2004, any improvement in the economy will be modest, Deak said. To an extent, the economies of all six New England states have been battered by a weak national economy, lower stock values, falling incomes and rising taxes.
Deak expects stronger gains in 2005, followed by slight weakening in 2006 and 2007 as interest rates rise. If that prediction is accurate, it could take six or seven years for Connecticut's job levels to return to their pre-recession peak of 1.7 million. Employment in the state reached that record high in July 2000.
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