.

UConn Report Says Fiscal Cliff Could be 'Disastrous' For Connecticut

The university's quarterly state economic outlook is grim.

 

Connecticut lost 5,700 jobs in the second and third quarters of 2012, unemployment surged and the state budget is headed for a more than $1 billion deficit for next year.

In short, Connecticut’s economy overall remained wobbly in 2012, a new report from the University of Connecticut shows, and it appears it won’t be making much of a comeback anytime soon.

“The only breaks Connecticut’s economy seems to catch these days are bad ones,” the introduction to this quarter’s The Connecticut Economy states. “Unemployment surged even as potential workers appeared to leave the labor force in droves. Cracks began appearing in what had been a rock-solid state budget. And the jobs forecast for 2013 remains tepid at best.”

To make matters worse, the report later goes on to say, Congress seems deadlocked on solving the nation’s financial woes and could end up going over the so-called “fiscal cliff” by year’s end, a situation that would hurt Connecticut’s economy even more.

“The consequences for Connecticut employment would be disastrous” if Congress doesn’t avoid the fiscal cliff, the report says. “The state could lose as many as 20,000 jobs before growth returned in 2014, with losses peaking at 5,000 in 2013-Q2. And that’s not even counting the possible defense-related job cuts a sequestration might trigger.”

There are some bright spots in the report. If the federal government can avoid going over the fiscal cliff Connecticut could begin to see job gains of more than 3,000 or more per quarter next year and the decline of manufacturing in Connecticut appears to be at an end, the report states.

Patrick Pryor December 14, 2012 at 01:28 PM
The strong outlook was more like a wish upon a fairy tale. When the government raised taxes by $1.5 billion, while increasing spending, and laying off State Troopers, based on a rosy outlook that some bureaucrat dreamed up, is when we knew we are in trouble with this clown governor, and his stooges in the house and senate. Report after report shows the same problems over and over. High taxes, high utilities, poor infrastructure, hostile business environment, massive entitlements, massive government, high cost of living, low value, but our blubbering bonehead governor is blind to that. No need to worry however, we will have a busway between New Britain and Hartford soon, and that will certainly save the economy.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »