For the first time, the Connecticut Labor Department, Office of Research, has produced
comprehensive occupational employment and wage data for the seven largest Labor Market
Areas (LMAs) in the State. The LMAs for which this data is now available are the
Bridgeport, Danbury, Hartford, New Haven, New London, Stamford and Waterbury LMAs.
The Office of Research, in conjunction with the U.S. Bureau of Labor Statistics,
conducts the Occupational Employment Statistics (OES) program, a yearly mail survey
designed to produce estimates of employment and wage rates by occupation. The 1997-98
Statewide and LMA estimates represent the combining of two survey rounds of data gathered
through contacts with more than 14,000 employers in the State. A close look at the 1997-98
estimates reveals some noteworthy characteristics of the occupational structure in
Connecticut.
The estimates show the Stamford LMA as having the highest concentration of people in
Managerial and Administrative occupations in the State. This can be attributed to the
large corporate presence in the Stamford LMA. Occupations found in the Managerial and
Administrative category include general managers/top executives, financial managers,
purchasing managers, and administrative service managers.
Despite company mergers and downsizing in the Hartford LMA, the area still
remains the leader in the number of professional, paraprofessional and technical workers
in the State. Occupations included in this division deal with theoretical or practical
aspects of such fields as science, art, education, law and business relations where
substantial post secondary education preparation or equivalent on-the-job training or
experience is required. Accountants, insurance underwriters, engineers, professors,
teachers and physicians/surgeons are just a few of the types of professional occupations
found in abundance in the Hartford LMA.
The Sales and Related category of the OES occupational structure includes people
selling goods or services as well as other occupations directly related to sales. Sales
jobs in this division range from sales engineers, insurance sales agents, real estate
agents, securities agents to retail salespersons, cashiers and stock clerks. A careful
review of the estimates show the Danbury LMA with the largest percentage of employment in
this category. This statistic coincides with another strength of the Danbury area's
economy. Year to year, the Danbury area consistently has the greatest volume of retail
sales in the State.
With the presence of casino gambling in the southeastern part of the State, it is no
surprise that the largest percentage of people working in service occupations can be found
in the New London LMA. The service category includes workers in occupations relating to
protective services, food services, health assisting services, cleaning and building
maintenance services and personal services. The shift from a manufacturing driven economy
to a service driven economy is more evident in the New London LMA than anywhere else in
the State.
An accurate description of the Waterbury LMA might be "the more things change, the
more they stay the same." As our current estimates show, the Waterbury LMA ranks
first on the percent of workers in the Production, Construction, Operating, Maintenance
and Material Handling occupational division. This division includes all skilled,
semiskilled, and unskilled workers performing machine and manual tasks involving
production, construction, operating, maintenance, repair, and material handling
operations. Examples of occupations in this category are mechanics, installers and
repairers, construction trades, machine setters, set-up operators, operators and tenders,
as well as hand working occupations such as assemblers. Over the years Waterbury has faded
as the "Brass Capital of the World", yet the area still shines with talented and
skilled crafts workers prepared for the future.
The 1997-98 estimates show Connecticut's economy as diverse, with most
regions very specialized in their occupational make-up. These occupational employment
estimates are very useful to job seekers, counselors, students, planners and economic
developers. As well as identifying the types of skilled workers in the market, the data
can be used to evaluate occupational trends by industry, classify emerging or declining
occupations and evaluate the impact of technology on occupations.
To obtain a free copy of Connecticut Occupational Employment and Wages, Statewide
or for the Labor Market Areas, contact the Department of Labor, Office of Research
at (860) 263-6285. The information is also available on our website at:
http://www.ctdol.state.ct.us/lmi/misc/oesarea.htm.
Can industry clusters play a role in inner city economic development?
Most assuredly, according to Professor Michael Porter of the Harvard Business School.cedmay99
Over the past few years Porter has turned his attention to
the problem of inner cities with a focus on the role of business and industry in turning
the economic tide. In his widely disseminated article, "The Competitive Advantage of
the Inner City", Porter argues that inner-city distress is as much an economic
problem as a social one. A sustainable economic approach must focus on making inner cities
competitive as business locations and on integrating these areas into the regional and
national economy.cedmay99
Porter has identified four competitive strengths of inner
cities and maintains that building on these inherentcedmay99
advantages is necessary in order to restore prosperity in
inner cities. The four strengths include: strategic location; unmet local demand;
available workforce; and integration with regional clusters. Economic progress in inner
cities will only come, Porter argues, from recognizing and enhancing these inherent
advantages and building on the base of existing companies.cedmay99
Over the next few months, this column will look at each of
these competitive strengths in a little more detail.
Commissioner James F.
Abromaitis of the Connecticut
Department of Economic and
Community Development announced
that Connecticut communities
authorized 1,105 new
housing units in March 1999, a
47.9 percent increase compared to
March of 1998 when 747 were
authorized.
The Department further indicated
that the 1,105 units permitted
in March 1999 represent an
increase of 113 percent from the
518 units permitted in February
1999. The year-to-date permits
are up 11.3 percent, from 2,131
through March 1998, to 2,372
through March 1999.
"Permit activity is on the
upswing, both in terms of the
monthly and year-to-date totals,"
Commissioner Abromaitis said,
"This is continued good news for
the housing market as we move
into the summer months."
Reports from municipal officials
throughout the state indicate that
Middlesex and Fairfield Counties
both with 96.4 percent showed the
greatest percentage increase in
March compared to the same
month a year ago. Tolland County
followed with a 57.1 percent
increase.
Fairfield County documented
the largest number of new, authorized
units in March with 330.
Hartford County followed with 239
units and New Haven County had
158 units. Stamford led all Connecticut
communities with 172
units, followed by Southington
with 56 and Middletown with 54.
We often hear data users
express some confusion or
misunderstanding about the three
employment data series produced
by the Department of Labor's
Office of Research. In this article,
we will attempt to clarify the
conceptual differences among them.
Perhaps the most important
concept to understand is whether
the employment data are providing
information regarding jobs or
people. The nonfarm employment
estimates and the data on workers
covered by unemployment insurance
are based on employerprovided
information about the
number of employees on company
payrolls during a specified time
period. These payroll sources
equate employment with jobs. The
labor force statistics are based
largely on a household survey that
identifies whether the residents of
the household are working or not
and, thus, they reflect the employment
status of people. The circumstances
under which these data
are developed are described below.
Nonfarm Employment from the Establishment Survey
The Current Employment
Statistics (CES) survey collects
data each month from a sample of
about 5,000 nonfarm establishments
in Connecticut. From these
data, employment, hours, and
earnings estimates for the State
and labor market areas are prepared
and published. Employment
reported is the total number
of persons on the payroll, full or
part time, during any part of the
pay period that includes the 12th
day of the month.
The nonfarm employment
estimates are benchmarked
annually to a more complete count
of employment. The basic source
of benchmark data for the CES
survey is data on "all employees"
collected as a byproduct of the
The Connecticut coincident
employment index
increased, once again, to a new
peak with the release of (preliminary)
February data. This month's
report coincides with the annual
benchmark revisions. These
revisions generally affect the most
recent observations, tending to
smooth the more exaggerated
movements. Using the newly
revised data, the coincident index
fell in only two months - August
and September - during the last
twelve. The coincident index now
stands at a level not seen since
February 1990 and not too far
from its prior peak in February
1989. The Connecticut leading
employment index continues to
send mixed signals about the
future path of the Connecticut
economy. The leading index last
reached its current high in February
1998. Since then, the index
has increased in five months and
decreased in the remaining seven
months. Over the past six months,
the leading index has risen one
month and fallen the next. The
index rose with the most recent
February 1999 estimate. We have
carefully monitored the leading
index over the past year because
its movements have raised some
concern about the possibility of an
impending slowdown in the Connecticut
economy.
If we look at some of the key
indicators included the indices, on
a positive note, the last twelve
months have witnessed a 1.74
percent increase in nonfarm
employment, or 28,400, and a
1.69 percent increase in total
employment, or 27,700. In addition,
the total unemployment rate
declined from 3.6 to 3.1 percent, a
substantial improvement in the
unemployment rate. On the
negative side, initial claims for
unemployment insurance increased
by 8.86 percent in February
1999 over February 1998
while total housing permits fell by
36.31 percent when comparing the
same two months.
In summary, the coincident
employment index rose from 94.3
in February 1998 to 99.5 in
February 1999. All four components
of the index point in a
positive direction on a year-overyear
basis with higher nonfarm
employment, higher total employment,
a lower insured unemployment
rate, and a lower total
unemployment rate.
The leading employment index
decreased from 92.0 in February
1998 to 89.3 in February 1999. All
five index components, once again,
sent negative signals on a yearover-
year basis with a higher
short-duration (less than 15
weeks) unemployment rate, higher
initial claims for unemployment
insurance, a shorter average work
week of manufacturing production
workers, lower total housing
permits, and lower Hartford helpwanted
advertising. This is the
second time (last month and this
month) since we began reporting
the leading index that all five
components sent negative signals
on a year-over-year basis in the
same month. Despite these numbers,
the leading index increased
this month over last month by a
small amount.
SOURCE: Connecticut Center for or Economic Analysis, University of Connecticut. Developed by Pami Dua [Economic Cycle
Research Institute; NY,NY] and Stephen M. Miller [(860) 486-3853, Storrs Campus]. Kathryn E. Parr and Hulya Varol [(860) 486-0485, Storrs Campus] provided research support.
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