FAIRFIELD COUNTY, Conn. – The current economic status in Connecticut is dire, according to a recent study from the University of Connecticut.
According to the report, Connecticut was one of the first states to go into recession, and hasn’t climbed back above its 2007 household income peak.
The study describes the state’s job recovery as having been “anemic, barely recovering a quarter of the jobs lost while the quality of jobs deteriorates.”
It also describes how the falling tax revenues will drive the current state budget into a “significant deficit” adding around $1 billion in deficits to each of the next two year’s biennial budgets.
It looked at what would happen to the state’s economy if $200 million in state budget cuts were to take place, the results being the loss of more than 5,000 jobs each year. Should the cuts rise to a billion dollars there would be a loss of 25,000 jobs, essentially eliminating all the jobs that have been created since the recovery began.
These job losses, the report says, would be mainly in the public sector. But the private sector would “gain significantly,” which could potentially help to speed the recovery despite the major budget cuts and public sector job loss.