A dwindling labor force and decreased economic expansion indicate “slower growth” in 2014 and 2015, according to Daniel W. Kennedy, senior economist with the Connecticut Economic Digest. In an article for the June issue, Kennedy writes that what initially appear to be positive economic directions in fact could be the result of negative occurrences.
“[A]fter increasing in March, 806,000 left the labor force in April, making a shrinking labor force the principal reason for the declining [unemployment rate],” writes Kennedy. “And the first estimate of U.S. GDP for 2014 Q1 showed that U.S. economic growth rapidly decelerated.” He goes on to blame “the bursting of the housing bubble” and its “persistent drag on the economy” for the sluggish economic recovery. Hartford and Bridgeport were hit especially hard, he notes. Kennedy also believes that as the economy recuperates, the greatest job gains will be in the education-health care and social assistance sector and the leisure-hospitality sector.