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Connecticut Economic Digest: August 2002 issue
UI Covered Employment Declines in 2001 | Out-of-State Executives Impressed with Connecticut | Housing Update

UI Covered Employment Declines in 2001 - First Time in Eight Years
By Edward T. Doukas Jr., Research Analyst, DOL

Employment in Connecticut covered by Unemployment Insurance (UI) decreased by 9,030 during 2001, a decline of 0.5 percent, according to preliminary figures. After eight consecutive years of expansion, the State's over-the-year decrease marked the first decline in annual average employment since the period of 1991-1992. Total private industry employment, constituting 85.9 percent of the State's employment total, decreased 2.1 percent, while government employment grew 9.9 percent in 2001. Some of the decline in private employment and increase in government employment is attributed to the change in the classification of Indian tribal councils and related establishments. In the past these establishments were assigned a private ownership code. Beginning with the first quarter of 2001, due to a change in federal law that governs the way Indian tribes are treated under the Federal Unemployment Tax Act (FUTA), federally recognized Indian tribes and related establishments are now classified in local government and assigned a local government ownership code.

The average annual wage of all Connecticut workers increased by 3.3 percent to $46,990 in 2001. The annual pay of private industry workers grew 3.6 percent in 2001 to $47,737, while pay for government sector employees was $42,447, an increase of 2.2 percent.

The number of business establishments in the State remained virtually unchanged in 2001. Total business establishments totaled 108,132 at the end of 2001, compared with 108,114 at the end of 2000. Total private establishments numbered 104,447 in 2001 versus 104,441 in 2000. Government work sites equaled 3,685 for 2001 while totaling 3,673 at the end of the prior year.

Data based on NAICS

Monthly employment and quarterly wage data are compiled from reports from employers who employ workers covered by the State's unemployment insurance laws. This information is first and foremost used to determine displaced worker benefit levels and employer tax rates. Beyond that purpose, the Connecticut Department of Labor's Office of Research makes ongoing efforts to enhance the quality of this data in order to provide the best possible information on the State's economy for informed decisions by policymakers and planners. The result is the largest available universe of employment and wage data by industry and area representing approximately 98 percent of all Connecticut employment. Employment that is not covered by unemployment insurance includes some workers in agriculture, domestic services, railroad employees, student workers, elected officials, employees of religious organizations, and self-employed and unpaid family workers.

This article presents the first look at Connecticut's annual average industry employment, wages, and establishment count based on the North American Industry Classification System (NAICS) structure. NAICS categorizes business establishments on a production-oriented approach, how products or services are created, as opposed to the Standard Industry Classification (SIC) system which categorized business establishments based on the end product produced or service provided. NAICS is the result of a cooperative effort on the part of the statistical agencies of the United States, Canada, and Mexico. To learn more about NAICS, access the Census Bureau web site at http://www.census.gov/epcd/www/naics.html.

Employment

The NAICS sector agriculture, forestry, fishing and hunting, recorded the largest percentage increase in annual average private employment over the previous year, up 3.1 percent. (See the complete table on pages 4 and 5.) The two NAICS sectors that are the most sensitive to changes in government spending showed the next highest percentage gains in employment during 2001. Health care and social assistance and educational services had employment gains of 1.9 percent and 1.6 percent, respectively. The other NAICS sectors to show increased employment during 2001 were: Construction, 1.5 percent; other services, except public administration, 1.5 percent; and finance and insurance, 1.1 percent.

On the other side of the ledger, arts, entertainment, and recreation had the largest percentage decline in employment, dropping 41.6 percent during 2001. As explained earlier, this drop is attributed to the reclassification of Indian tribal councils and related establishments from private ownership to local government ownership. Mining showed the next largest drop in annual average employment, 4.9 percent, followed by administrative and waste management, 4.3 percent, and transportation and warehousing also down 4.3 percent. The remaining NAICS sectors recorded the following declines in annual employment: Utilities, 4.1 percent; manufacturing, 3.5 percent; information, 3.2 percent; management of companies and enterprises, 2.9 percent; real estate and rental and leasing, 2.0 percent; accommodation and food services, 0.9 percent; retail trade, 0.8 percent; professional and technical services, 0.8 percent; wholesale trade, 0.3 percent.

The Bureau of Labor Statistics (BLS) and its NAICS partner agencies have further grouped NAICS sectors upwards to form the top level goods-producing and service-providing aggregations referred to as "domains." The goods-producing domain is composed of the four NAICS sectors agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing. The service-providing domain encompasses the remaining NAICS sectors.

Aggregating 2001 annual Connecticut employment in this manner reveals that 17.9 percent of the State's employment was in the goods-producing domain, while 82.1 percent of the total employment was in the service-providing domain. An even closer look highlights that the goods-producing domain's annual average employment declined 2.3 percent during 2001, which accounted for 78.8 percent of the State's drop in employment. The service-providing domain's employment dropped by only 0.1 percent during the same period.

Wages

Average annual pay levels for Connecticut varied greatly by industry. However, it should be taken into account that the annual pay level among industry sectors are affected by various factors, including hours worked (full or part-time), the composition of the workforce, and weather and seasonal influences.

The highest average annual wage was earned in the management of companies and enterprises (i.e., corporate headquarters) sector, $104,884. Workers in this industry sector, which account for less than two percent of private sector employment, earned an annual wage that was 119.7 percent higher than the State average for private sector employees in 2001, which was $47,737. The next highest pay level was found in the finance and insurance sector, $98,242. Workers in this sector earned a little more than double that of all private sector employees. Within the finance and insurance sector are found the highest NAICS sub-sector (three-digit) level wages, $256,972 and $108,283, respectively, for securities, commodity contracts, investments workers (NAICS 523) and funds, trusts, and other financial vehicles employees (NAICS 525). Ranking third highest in sector-level average annual pay were workers in the utilities sector, at $78,096, a figure 63.6 percent higher than the private statewide average.

On the opposite end of the scale, workers in the accommodation and food services sector recorded the lowest pay, $15,519, 67.5 percent less than the private sector statewide average. The next lowest pay was earned in the agriculture, forestry, fishing and hunting sector, $23,922, and the arts, entertainment, and recreation sector, $24,548.

The largest over-the-year percentage pay increase in the private sector was recorded in the finance and insurance sector, 8.5 percent. The next highest increases were in administrative and waste management, 6.9 percent, followed by educational services, 5.7 percent. The largest over-the-year percentage pay decrease occurred in the management of companies and enterprises sector, down 6.3 percent. Other industry sectors to show deceased annual wages were retail trade, 3.6 percent; arts, entertainment, and recreation, 2.4 percent; agriculture, forestry, fishing and hunting, 0.4 percent; and information, 0.2 percent.

Reviewing annual average wage figures at the domain level shows that workers in the goods-producing sectors earned $53,464 during 2001. This represented an increase of 2.5 percent over the previous year. Goods-producing workers earned an annual wage that was 13.8 percent higher than the average for all Connecticut workers during 2001. Workers in the service-providing sectors earned $45,579 for 2001, an increase of 3.6 percent over the previous year, but three percent less than the average for all Connecticut workers and 14.7 percent less than their counterparts in the goods-producing industries.

Labor Market Areas

Among Connecticut's ten Labor Market Areas (LMAs), only New London and Danielson showed an increase in annual average employment during 2001 due, in part, to hiring at the Indian tribal-run casinos. The New London area's total annual average employment for 2001 was 131,328, up 1.5 percent from the previous year. The Danielson LMA showed an increase of 0.4 percent, to 21,969. The largest percentage decline in employment among LMAs was found in the Stamford and Waterbury areas. Both of these LMAs showed a 1.8 percent drop in employment during 2001. Stamford's employment level dropped to 205,496, while the Waterbury LMA's declined to 84,330.

Every LMA posted increased wages during 2001. As with employment, the Danielson LMA had the greatest percentage increase in its annual average wage, up 8.6 percent to $34,213. The Danbury and New London LMAs had the next greatest percentage increase, both up 4.5 percent. The Danbury LMA's 2001 earnings level was $45,231, while workers in the New London LMA earned $38,175.

The highest average annual wage earned during 2001 was in the Stamford LMA, $80,251, a figure 70.8 percent higher than the statewide average. The lowest average wage was earned in the Torrington LMA, $33,823. Torrington LMA workers earned 28.0 percent less than the statewide average.

The UI covered annual employment and wages by industry data are also available at http://www.ctdol.state.ct.us/lmi/lmidata.htm#covwages.

Connecticut UI Covered Employment and Wages by NAICS Sector for 2000 and 2001

NAICS Description

Establishments

Employment

Wages

2000

2001

00-01
% Change

2000

2001

00-01 Change

2000

2001

00-01
% Change

No.

%

Statewide

108,114

108,132

0.0

1,674,816

1,665,786

-9,030

-0.5

45,485

46,990

3.3

Total private

104,441

104,447

0.0

1,460,644

1,430,356

-30,288

-2.1

46,067

47,737

3.6

Goods-producing

16,780

16,696

-0.5

305,098

297,984

-7,114

-2.3

52,171

53,464

2.5

Service-providing

91,334

91,436

0.1

1,369,718

1,367,802

-1,916

-0.1

43,996

45,579

3.6

11

Agriculture, forestry, fishing and hunting

321

325

1.2

5,198

5,358

160

3.1

24,010

23,922

-0.4

111

Crop production

151

156

3.3

3,993

4,046

53

1.3

23,572

23,447

-0.5

112

Animal production

75

78

4.0

800

838

38

4.8

25,491

25,837

1.4

113

Forestry and logging

12

12

0.0

29

27

-2

-6.9

29,092

28,139

-3.3

114

Fishing, hunting and trapping

19

17

-10.5

70

70

0

0.0

35,591

32,686

-8.2

115

Agriculture and forestry support activities

64

62

-3.1

306

378

72

23.5

22,724

22,777

0.2

21

Mining

66

65

-1.5

755

718

-37

-4.9

50,627

50,988

0.7

211

Oil and gas extraction

n

n

n

n

n

n

n

n

n

n

212

Mining, except oil and gas

59

57

-3.4

728

690

-38

-5.2

50,319

50,896

1.1

213

Support activities for mining

n

n

n

n

n

n

n

n

n

n

22

Utilities

135

131

-3.0

9,652

9,254

-398

-4.1

75,486

78,096

3.5

221

Utilities

135

131

-3.0

9,652

9,254

-398

-4.1

75,486

78,096

3.5

23

Construction

10,476

10,502

0.2

64,276

65,251

975

1.5

45,999

48,149

4.7

236

Construction of buildings

2,868

2,859

-0.3

13,099

13,409

310

2.4

49,219

51,844

5.3

237

Heavy and civil engineering construction

572

576

0.7

7,291

7,065

-226

-3.1

57,246

55,246

-3.5

238

Specialty trade construction

7,036

7,067

0.4

43,885

44,778

893

2.0

43,170

45,922

6.4

31-33

Manufacturing

5,917

5,804

-1.9

234,869

226,657

-8,212

-3.5

54,488

55,700

2.2

311

Food manufacturing

270

262

-3.0

7,396

7,330

-66

-0.9

33,276

34,124

2.5

312

Beverage and tobacco product manufacturing

36

33

-8.3

1,048

1,144

96

9.2

85,156

90,156

5.9

313

Textile mills

46

42

-8.7

2,003

1,742

-261

-13.0

32,077

32,932

2.7

314

Textile product mills

97

98

1.0

1,267

1,269

2

0.2

30,629

30,809

0.6

315

Apparel manufacturing

52

50

-3.8

1,225

1,044

-181

-14.8

35,700

39,314

10.1

316

Leather and allied product manufacturing

7

7

0.0

291

291

0

0.0

66,901

66,792

-0.2

321

Wood product manufacturing

153

157

2.6

1,962

1,943

-19

-1.0

34,208

36,243

5.9

322

Paper manufacturing

97

96

-1.0

6,873

6,598

-275

-4.0

50,208

55,715

11.0

323

Printing and related support activities

589

566

-3.9

10,792

10,097

-695

-6.4

44,618

44,108

-1.1

324

Petroleum and coal products manufacturing

19

18

-5.3

269

220

-49

-18.2

64,302

60,046

-6.6

325

Chemical manufacturing

189

189

0.0

20,098

19,695

-403

-2.0

86,630

95,397

10.1

326

Plastics and rubber products manufacturing

254

247

-2.8

8,780

8,588

-192

-2.2

40,493

40,889

1.0

327

Nonmetallic mineral product manufacturing

143

142

-0.7

2,866

2,854

-12

-0.4

45,246

46,744

3.3

331

Primary metal manufacturing

109

107

-1.8

6,706

6,093

-613

-9.1

47,937

47,383

-1.2

332

Fabricated metal product manufacturing

1,498

1,474

-1.6

40,287

37,948

-2,339

-5.8

43,314

43,802

1.1

333

Machinery manufacturing

711

691

-2.8

23,658

22,595

-1,063

-4.5

54,900

57,323

4.4

334

Computer and electronic product manufacturing

443

434

-2.0

22,452

20,893

-1,559

-6.9

62,151

55,803

-10.2

335

Electrical equipment and appliance manufacturing

204

199

-2.5

12,858

12,833

-25

-0.2

61,253

63,749

4.1

336

Transportation equipment manufacturing

262

260

-0.8

46,970

46,905

-65

-0.1

60,517

60,963

0.7

337

Furniture and related product manufacturing

317

314

-0.9

3,640

3,621

-19

-0.5

35,679

36,113

1.2

339

Miscellaneous manufacturing

421

418

-0.7

13,430

12,956

-474

-3.5

47,510

48,953

3.0

42

Wholesale trade

9,064

9,234

1.9

67,750

67,560

-190

-0.3

63,146

65,649

4.0

423

Merchant wholesalers, durable goods

3,269

3,148

-3.7

34,032

33,905

-127

-0.4

59,221

59,026

-0.3

424

Merchant wholesalers, nondurable goods

1,510

1,465

-3.0

23,226

22,857

-369

-1.6

58,907

67,872

15.2

425

Electronic markets and agents and brokers

4,285

4,621

7.8

10,492

10,799

307

2.9

85,264

81,732

-4.1

44-45

Retail trade

13,857

13,535

-2.3

196,280

194,793

-1,487

-0.8

28,051

27,044

-3.6

441

Motor vehicle and parts dealers

1,349

1,349

0.0

21,858

22,018

160

0.7

41,613

43,711

5.0

442

Furniture and home furnishings stores

844

823

-2.5

7,129

7,220

91

1.3

30,989

31,649

2.1

443

Electronics and appliance stores

807

780

-3.3

7,345

7,100

-245

-3.3

41,431

43,426

4.8

444

Building material and garden supply stores

1,006

1,013

0.7

14,618

15,054

436

3.0

31,335

31,669

1.1

445

Food and beverage stores

2,332

2,281

-2.2

46,372

46,208

-164

-0.4

19,567

20,861

6.6

446

Health and personal care stores

1,000

967

-3.3

14,528

14,933

405

2.8

24,654

25,495

3.4

447

Gasoline stations

1,067

1,039

-2.6

6,554

6,445

-109

-1.7

19,802

21,524

8.7

448

Clothing and clothing accessories stores

1,729

1,644

-4.9

19,586

19,424

-162

-0.8

17,902

18,320

2.3

451

Sporting goods, hobby, book and music stores

973

970

-0.3

9,805

9,769

-36

-0.4

16,449

17,059

3.7

452

General merchandise stores

345

342

-0.9

25,287

24,214

-1,073

-4.2

16,780

17,913

6.8

453

Miscellaneous store retailers

1,694

1,644

-3.0

12,324

12,050

-274

-2.2

20,014

20,162

0.7

454

Nonstore retailers

711

683

-3.9

10,874

10,358

-516

-4.7

95,160

58,832

-38.2

48-49

Transportation and warehousing

1,867

1,856

-0.6

40,901

39,160

-1,741

-4.3

33,497

34,827

4.0

481

Air transportation

76

83

9.2

2,128

2,061

-67

-3.1

38,227

43,141

12.9

482

Rail transportation

n

n

n

n

n

n

n

n

n

n

483

Water transportation

35

34

-2.9

1,194

977

-217

-18.2

67,554

79,388

17.5

484

Truck transportation

773

754

-2.5

7,913

7,517

-396

-5.0

37,637

39,329

4.5

485

Transit and ground passenger transportation

344

353

2.6

11,139

11,175

36

0.3

22,336

23,113

3.5

486

Pipeline transportation

5

4

-20.0

159

162

3

1.9

75,829

81,372

7.3

487

Scenic and sightseeing transportation

21

22

4.8

189

179

-10

-5.3

19,897

22,344

12.3

488

Support activities for transportation

346

342

-1.2

4,008

3,977

-31

-0.8

47,201

49,791

5.5

491

Postal service

n

n

n

n

n

n

n

n

n

n

492

Couriers and messengers

155

154

-0.6

7,692

7,521

-171

-2.2

32,334

31,919

-1.3

493

Warehousing and storage

106

103

-2.8

6,454

5,543

-911

-14.1

32,102

33,580

4.6

51

Information

2,050

1,940

-5.4

46,193

44,705

-1,488

-3.2

57,800

57,693

-0.2

511

Publishing industries, except Internet

553

516

-6.7

15,573

14,461

-1,112

-7.1

54,131

52,432

-3.1

512

Motion picture and sound recording industries

358

339

-5.3

2,286

2,292

6

0.3

31,608

35,091

11.0

515

Broadcasting, except Internet

103

101

-1.9

4,079

4,257

178

4.4

60,338

63,904

5.9

516

Internet publishing and broadcasting

87

83

-4.6

1,056

977

-79

-7.5

70,361

72,193

2.6

517

Telecommunications

400

383

-4.3

16,241

16,226

-15

-0.1

63,895

64,022

0.2

518

ISPs, search portals, and data processing

450

419

-6.9

5,507

5,139

-368

-6.7

63,335

61,426

-3.0

519

Other information services

99

99

0.0

1,451

1,353

-98

-6.8

32,940

32,137

-2.4

52

Finance and insurance

6,277

6,312

0.6

120,639

122,013

1,374

1.1

90,561

98,242

8.5

522

Credit intermediation and related activities

2,180

2,219

1.8

32,543

32,324

-219

-0.7

63,349

65,963

4.1

523

Securities, commodity contracts, investments

1,591

1,710

7.5

15,958

16,750

792

5.0

235,198

256,972

9.3

524

Insurance carriers and related activities

2,382

2,267

-4.8

66,388

67,361

973

1.5

69,494

73,430

5.7

525

Funds, trusts, and other financial vehicles

124

116

-6.5

5,750

5,578

-172

-3.0

86,391

108,283

25.3

53

Real estate and rental and leasing

3,408

3,363

-1.3

21,629

21,202

-427

-2.0

41,084

42,370

3.1

531

Real estate

2,704

2,677

-1.0

14,181

13,829

-352

-2.5

44,770

45,645

2.0

532

Rental and leasing services

656

635

-3.2

6,799

6,711

-88

-1.3

33,358

34,707

4.0

533

Lessors of nonfinancial intangible assets

48

51

6.3

650

662

12

1.8

41,415

51,656

24.7

54

Professional and technical services

12,993

13,058

0.5

95,159

94,398

-761

-0.8

70,522

72,738

3.1

541

Professional and technical services

12,993

13,058

0.5

95,159

94,398

-761

-0.8

70,522

72,738

3.1

55

Management of companies and enterprises

569

564

-0.9

29,283

28,428

-855

-2.9

111,978

104,884

-6.3

551

Management of companies and enterprises

569

564

-0.9

29,283

28,428

-855

-2.9

111,978

104,884

-6.3

56

Administrative and waste management

6,241

6,344

1.7

90,390

86,468

-3,922

-4.3

26,801

28,650

6.9

561

Administrative and support activities

5,802

5,891

1.5

84,568

80,728

-3,840

-4.5

25,852

27,767

7.4

562

Waste management and remediation services

439

453

3.2

5,823

5,740

-83

-1.4

40,585

41,067

1.2

61

Educational services

1,080

1,139

5.5

40,391

41,021

630

1.6

38,181

40,344

5.7

611

Educational services

1,080

1,139

5.5

40,391

41,021

630

1.6

38,181

40,344

5.7

62

Health care and social assistance

8,916

8,907

-0.1

202,855

206,754

3,899

1.9

34,928

36,612

4.8

621

Ambulatory health care services

5,937

5,906

-0.5

67,572

68,474

902

1.3

43,661

46,041

5.5

622

Hospitals

56

54

-3.6

51,311

52,749

1,438

2.8

40,280

42,119

4.6

623

Nursing and residential care facilities

1,085

1,092

0.6

54,351

54,560

209

0.4

27,476

28,743

4.6

624

Social assistance

1,838

1,855

0.9

29,622

30,971

1,349

4.6

19,410

20,248

4.3

71

Arts, entertainment, and recreation*

1,564

1,608

2.8

39,684

23,162

-16,522

-41.6

25,159

24,548

-2.4

711

Performing arts and spectator sports

492

506

2.8

4,868

4,928

60

1.2

35,850

39,939

11.4

712

Museums, historical sites, zoos, and parks

94

94

0.0

2,106

2,036

-70

-3.3

21,382

22,679

6.1

713

Amusement, gambling, and recreation

978

1,008

3.1

32,710

16,198

-16,512

-50.5

23,811

20,101

-15.6

72

Accommodation and food services

6,497

6,572

1.2

97,867

97,016

-851

-0.9

14,921

15,519

4.0

721

Accommodation

408

418

2.5

11,652

11,654

2

0.0

20,528

20,745

1.1

722

Food services and drinking places

6,089

6,154

1.1

86,215

85,362

-853

-1.0

14,164

14,806

4.5

81

Other services, except public administration

12,655

12,632

-0.2

54,573

55,386

813

1.5

24,679

25,771

4.4

811

Repair and maintenance

2,937

2,904

-1.1

15,142

15,178

36

0.2

32,140

33,791

5.1

812

Personal and laundry services

3,132

3,098

-1.1

18,614

18,725

111

0.6

20,753

21,640

4.3

813

Membership associations and organizations

2,025

2,019

-0.3

14,716

15,153

437

3.0

24,359

25,628

5.2

814

Private households

4,561

4,611

1.1

6,101

6,328

227

3.7

18,909

19,109

1.1

 

Total government*

3,673

3,685

0.3

214,172

235,429

21,257

9.9

41,520

42,447

2.2

 

Federal

594

627

5.6

23,467

21,597

-1,870

-8.0

44,567

47,111

5.7

 

State

787

779

-1.0

63,544

63,939

395

0.6

44,853

47,848

6.7

 

Local

2,292

2,279

-0.6

127,161

149,893

22,732

17.9

39,293

39,472

0.5

n = nondisclosable

* Reflects the reclassification of Indian tribal councils and related establishments


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Out-of-State Executives Impressed with Connecticut
August 2002 Economic Digest Article

According to a just released survey, the State's initiative to promote Connecticut as one of the nation's fastest growing technology hot spots is producing results. Over 80 percent of nearly 200 technology industry executives, responding to a telephone survey, indicated that their image of Connecticut as a growing technology "hot spot" was enhanced after visiting the "Technology...You Belong in Connecticut" exhibit at the Gartner Symposium/ ITxpo 2002 in San Diego,  California. The symposium is the largest gathering of information technology (IT) professionals worldwide. 

The symposium was the latest element of the You Belong in Connecticut campaign, implemented on behalf of thousands of Connecticut based BioScience and IT companies, by the Connecticut Technology Council  (CTC), CURE - Connecticut's BioScience Cluster, and the State Department of Economic and Community Development (DECD). CTC is the "driver" of the State's Software and Information Technology Cluster.  Among the advantages touted are Connecticut's strategic location between  Boston and New York, top rankings nationwide for number of  patents issued, financial resources available for investment, educational system, and investments in research  and development with commercial potential. The survey was conducted by Strategic Sales and  Marketing. 

More information about the You Belong in Connecticut campaign is available at www.YouBelongInCT.com.

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Housing Update

Commissioner James F. Abromaitis of the Connecticut Department of Economic and Community Development today announced that Connecticut communities authorized 782 new housing units in June 2002, a 1.4 percent decrease compared to June of 2001 when 793 units were authorized.

The Department further indicated that the 782 units permitted in June 2002 represent a 18.3 percent decrease from the 957 units permitted in May 2002. The year-to-date permits are up 5.9 percent, from 4,529 through June 2001, to 4,796 through June 2002.

The Danbury Labor Market Area added 86 new housing units, an increase of 17 units compared to a year ago. Danbury led all Connecticut communities with 33 units, followed by Middletown with 19 and Vernon with 18 units. From a county perspective, Windham County had the largest percentage gain (53.1 percent) compared to a year ago.

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Last Updated: October 15, 2002