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The Danbury Labor Market
Area has been riding the
economic wave of prosperity over
the past few years. Most of the
indicators point to a bright
future. This economic success
has been achieved as a result of
many favorable factors: a highly
trained and educated workforce;
its location-Fairfield County, 60
miles from New York City and
bordering Westchester County,
New York; a highly diversified
industrial base including chemicals,
robotics, telecommunications,
finance, medical equipment,
optics, pharmaceuticals,
computer software and equipment,
batteries, relocation firms,
and industrial bearings. In
addition to its strong manufacturing
base, the area accounts for
the highest amount of annual
retail sales in the state. The
Danbury Fair Mall with over 200
stores coupled with numerous
shopping centers provides for an
employment of over 17,000 workers.
A very low unemployment
rate, which historically has
ranked as one of the lowest in the
state, reflects a very active
workforce. In addition, this
region ranks very high in relation
to average weekly manufacturing
earnings in the state. The number
of average manufacturing
weekly hours worked and average
hourly wages also rank near the top.
The educational level of the
Danbury Area's population is
remarkably high. In a Fortune
magazine article dated August
18, l997, the area ranked thirteenth
in the country with 13.8%
of the population holding a fouryear
college degree. Jobs in
finance, medicine, engineering
and high tech industries require
managers, professionals, and
technical personnel with strong
educational credentials.
Construction is another sector
which has grown considerably.
Between January 1996 and
January 1997, 300 new jobs were
added in this industry, a 11.5%
increase. New home construction,
road building, commercial and
industrial construction and
improvements accounted for this
growth. Companies such as G.E.
Capital, H.F.S. Mobility, Bob's
Furniture, and Circuit City, will
be in need of thousands of square
feet of space. These developments
will generate new construction,
while other areas are to be renovated.
A solid infrastructure adds
to the allure of the area.
The second highest increase
in jobs over the same time period
occurred in finance, insurance,
and real estate. Approximately
300 jobs were added to this
category resulting in a 7.9%
spike. With an expanding
economy, services in the banking,
credit, insurance, and housing
areas are needed to support the
industrial, commercial, and retail
demands. According to the News
Times, the area's local newspaper,
news reports indicate that
within the year over 800 new jobs
will be created in the financial,
services, and manufacturing
sectors. In some cases, the
increase is due to the expansion
of existing companies while
others are due to new companies
moving into the area. The
Danbury Labor Market Area has
been relatively less affected by
corporate downsizing and defense
cuts when compared to the
central and eastern sections of
the state. Admittedly, there have
been layoffs and plant closings;
however, newly created jobs have
replaced jobs lost. New employment
has been edging up gradually
over the past few years. A
balance of manufacturing and
service related jobs has helped to
add stability to the job market
and jobs have been added in
finance, telecommunications,
sales management, health services
and education.
One significant development
in the city of Danbury is the
resurgence of City Center. What
was once a slow growth, sluggish
retail area, has transformed itself
into a business and entertainment
center. New restaurants,
boutiques, and other small
business enterprises have added
economic stability to the downtown
zone. Some of the start-up
capital projects include the
expansion of city hall, the creation
of a new technology center
at the Danbury Library, the
possibility of a partnership with
the National Hockey League for
developing an ice arena on redevelopment
property, and the
revitalization of the Palace Theater
Theater for social and cultural events.
Home sales in Fairfield
County between the third quarter
of 1995 and the third quarter of
1996 increased 7.9%. Both
Danbury and Bethel registered
strong sales. Commercial real
estate is also at a premium.
Corporate expansion, the increase
in start-up companies,
and new retail outlets are causing
a shortage of available property.
Future economic trends look
promising for the Danbury Labor
Market Area. If the financial and
economic indicators continue to
remain stable, the region will
continue to attract corporate,
retail, and service related industries.
The Governor's Small Business Advisory Council, which became active again in October 1995, has had a
busy two years of activity and will continue programs serving Connecticut's Small Business Community. Governor Rowland
re-established the Council on October 18, 1995, by Executive Order 7-A, which says that
the group will operate within the Department of Economic and Community Development. The Council is a
bipartisan, volunteer group of professional men and women involved in small business throughout the State.
Its Mission is as follows:
- To act as a voice for the small business community in bringing their concerns, issues
and interests to the Governor's office, the State Legislature and Regulatory bodies;
- To ensure that small business has appropriate access to services available through
State agencies and organizations;
- To evaluate the performance of State and public agencies and organizations serving the
needs of small business;
- To coordinate with the State's economic development efforts the general promotion of
the growth of small business.
The GSBAC has sponsored two very successful prior breakfast forums over the past six months, bringing
together over 1,100 small business people in an effort to discuss
issues affecting them. Keynote speakers have been featured at
these events, including Governor Rowland and Lt. Governor Rell,
as well as Mark Stevens, nationally syndicated columnist for The
Hartford Courant. Planning is underway for a breakfast forum
which will be scheduled in late October involving Governor
Rowland and the University of New Haven.
To date, the Council's activities have also included the following:
1) Meeting with various state agency department heads to
evaluate specific agency programs and how they impact small
business. 2) Meeting with representatives from the Connecticut
Development Authority in an effort to represent the end-user of
various loan products offered by the State; and 3) Submitting its
legislative endorsements to the Governor and State legislators for consideration during the past session.
Other efforts underway are the publishing of a newsletter highlighting issues, programs, etc. which directly
address "small business" concerns. The GSBAC newsletter will be distributed to businesses throughout the
State. In addition, the Council is in the process of developing a Web site on the Internet to provide information
about the Council and its members, as well as information on State agency programs and services available to
the small business community and how to access them.
The Council's co-chairmen are Joseph Harpie, Vice President at First City Bank in Newington, and Michael Martinez,
President of Martinez & Associates, an information technology firm located in Hartford. From the small business community,
Harpie and Martinez are joined by the following additional members of the Council: Lisa Arenberg, Advanced Placement, Inc.,
Milford; Ralph Biondi, Biondi and Rosengrant; M. Edward Fenton, Fenton Group, Wethersfield; Murray Gerber, Prototype &
Plastic Mold Co., Middletown; Mary Gentry, Gentry & Associates, North Haven; Brendan Grady, Dollar Dry Dock, West Hartford;
Mark Hyner, Whyco Chromium Co., Thomaston; Thomas Kellogg, Business Lenders, Inc., Hartford; and Carlos Lopez,
Luis of Hartford, Hartford.
Also, Bobi Molchan, R.C. Knox and Company, Inc., Hartford; Shaw Mudge, Jr., Shaw Mudge & Co., Shelton; Rosalie
Renfrew, Access Research, Inc., Windsor; Thomas Reynolds, Reynolds & Rowella, Ridgefield; Marcia Rogers, Smaller Manufactures
Association of CT, Waterbury; Warren Ruppar, Independent Insurance Agents of Connecticut, Inc., Wethersfield;
Kenneth Savino, Savino, Sturrock & Sullivan, East Hartford; Edward Seder, Shetucket Iron & Metal Co., Norwich; Carmen
Vacalebre, C. Vac Enterprises, Waterbury; and Joel Young, Olympus Industrial, Middletown, Commissioner Peter Ellef, Department
of Economic and Community Development, represents the State as a Council member, and Adam Ney, CT Business
and Industry association, attends GSBAC meetings as a guest.
The Connecticut Department
of Economic and Community
Development announced that
Connecticut communities
authorized 886 new housing
units in June 1997, a 29.5%
increase compared to June 1996
when 684 were authorized.
The Department further
indicated that the 886 units
permitted in June 1997 represent
an increase of 6% from the
836 units permitted in May
1997, and that the year-to-date
permits are up 32.6% from 3,481
through June 1996, to 4,616
through June 1997.
Reports from municipal
officials throughout the state
indicate that New Haven County
showed the greatest percentage
increase in June compared to the
same month a year ago: 107.1%,
followed by Tolland County with
a 30.6% increase.
New Haven County documented
the largest number of
new, authorized units in June
with 292. Hartford County
followed with 158 units and
Fairfield County had 150 units.
East Haven led all Connecticut
communities with 87 units,
followed by Cheshire with 61,
and Danbury with 24.
Has summer returned to the
Connecticut economy? The
Connecticut coincident employment
index, a barometer of
current employment activity,
reached another new peak in the
current expansion with the
release of (preliminary) May data.
Since January 1996, the coincident
index has not fallen in any
month, except in September
1996. What's more, this recent
upward movement has been more
brisk than the previous
movement since the last trough.
Connecticut's leading employment
index, a barometer of future
employment activity, continued
its yo-yo pattern. The index has
not moved in the same direction,
either up or down, for more than
two consecutive months since
December 1994. This month, it
returned to its peak in the current
expansion; last reached in March 1997.
The movement in the coincident
index since January 1996
mirrors the stronger employment
market. Over the last 17 months,
the coincident index expanded by
9.8 percent. Nonfarm employment
rose by 46,000, or 2.9
percent, while total employment
rose by 39,800, or 2.5 percent. In
addition, the insured unemployment
rate fell from 3.06 percent
to 2.30 percent, or a 24.8 percent
decrease, while the total unemployment
rate fell from 6.0 percent
to 5.2 percent, or an 13.3
percent decrease. All in all, the
coincident index forecasts continuing
fair weather.
Over the last 17 months, the
leading index grew by 8.2 percent.
Housing permits rose from
527 to 685, or 30.0 percent.
Housing permits did, however,
break the 1,000 mark twice -
May 1996 and March 1997. The
short-duration unemployment
rate fell from 1.86 to 1.29 percent,
or a 30.6 percent decrease.
Hartford help-wanted advertising
increased from 33 to 36, or 9.1
percent. The initial claims for
unemployment insurance decreased
from 20,971 to 15,523,
or 26.0 percent. Finally, the
average workweek for manufacturing
production workers rose
from 39.1 to 42.5 hours, or 8.7
percent. Even though the leading
index continues to bounce
around, the overall trend predicts
more sunny, cloudless days in
our future.
In summary, the coincident
employment index rose from 84.7
in May 1996 to 89.9 in May 1997.
All four index components continue
to point in a positive direction
on a year-over-year basis
with higher nonfarm employment,
higher total employment, a
lower insured unemployment
rate, and a lower total unemploymentrate.
In summary, the coincident
employment index rose from 84.7
in May 1996 to 89.9 in May 1997.
All four index components continue
to point in a positive direction
on a year-over-year basis
with higher nonfarm employment,
higher total employment, a
lower insured unemployment
rate, and a lower total unemployment rate.
Source: Connecticut Center for Economic Analysis, University of Connecticut. Developed by Pami Dua [(203) 461-6644,
Stamford Campus (on leave)] and Stephen M. Miller [(860) 486-3853, Storrs Campus]. Kathryn E. Parr [(860) 486-3022, Storrs
Campus] provided research support.
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