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Connecticut Economic Digest: August 2005 issue

Modest gain in 2004 UI covered employment
By Edward T. Doukas Jr., Research Analyst, DOL

Reversing the trend over the past three years, employment covered by unemployment insurance in Connecticut recorded an increase of 6,176, or 0.4 percent according to preliminary annual average figures. Total private industry employment, accounting for 85.7 percent of the State's employment total, increased 0.6 percent in 2004. Government employment (including Indian Tribal councils and related establishments) declined in 2004, down 0.9 percent. For the second consecutive year, State government employment dropped, down 1,525, or 2.6 percent.

The annual average wage of all Constitution State workers increased by 5.5 percent to $50,992 in 2004. The annual pay of private industry workers grew to $51,616, an increase of 5.5 percent over the previous year, while pay for government sector employees grew 5.6 percent in 2004 to $47,249.

The total number o f business establishments in Connecticut increased by 0.8 percent during 2004, totaling 109,644 at the end of the year compared to 108,744 at the end of 2003. Total private establishments numbered 105,966 in 2004 versus 105,103 in 2003. The number of government work sites totaled 3,678 in 2004 compared to 3,641 at the end of 2003.

Sector employment and wages

The construction sector recorded the largest percentage increase in private industry employment over the year, up 6.3 percent, followed by administrative and waste management and educational services. The largest percentage declines were in the management of companies and enterprises, (down 7.0 percent), information, and utilities sectors.

The highest annual average wage in 2004 was earned by employees in the management of companies and enterprises sector at $121,243. Next highest were finance and insurance, $118,484, and utilities, $97,305. Conversely, workers in the accommodation and food services sector, in which there is a high prevalence of part-time workers, earned an annual average wage of $16,600.

Looking at a finer level of industry detail, the industries that experienced the greatest employment gains from 2003 to 2004 were specialty trade construction, administrative and support activities, food services and drinking places, and educational services.

Industry sub-sectors that showed the largest employment declines over the year were insurance carriers and related activities, management of companies and enterprises, and state government.

The change in number of industry establishments can also reveal potential trends. The greatest percent change often occurs in industry sectors where there are fewer establishments, but may identify areas in which business opportunities have been identified. From 2003 to 2004, the percent change in number of establishments was highest in pipeline transportation, warehousing and storage, federal government, telecommunications, utilities and educational services. Percentage declines were greatest in fishing, hunting and trapping; apparel manufacturing; Internet publishing and broadcasting; and ISPs, search portals and data processing services.

Covering more than 90 percent of all workers in the State, the Unemployment Insurance (UI) program provides a more detailed view of Connecticut industries than is available from other sources.

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Published by the Connecticut Department of Labor, Office of Research
Last Updated: September 7, 2005