I. Strategic Elements

I.  STRATEGIC ELEMENTS

The Unified State Plan must include a Strategic Planning Elements section that analyzes the State’s current economic environment and identifies the State’s overall vision for its workforce development system. The required elements in this section allow the State to develop data-driven goals for preparing an educated and skilled workforce and to identify successful strategies for aligning workforce development programs to support economic growth. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs.

(a)  (1) (A) Economic Analysis: Unified State Plan must include an analysis of economic conditions and trends in CT (including sub-state regions and any specific economic areas identified by the State).

Our shared history in Connecticut demonstrates a commitment to new ideas and betterment of the old. From the invention of the sewing machine to decades of leading the insurance industry to the development and production of fuel cells, we in Connecticut have spent centuries showing the world how to improve. From world-ranking productivity to one of the highest levels of foreign direct investment, Connecticut models the attributes that are defining the modern economy. As we move further into the 21st century, Connecticut is dedicated to continuing to innovate and live up to our rich history as a national and world leader.

Connecticut’s strength starts with its people. We have the third most educated workforce in the nation, as well as the healthiest residents and the highest per capita income. We are a community of forward-thinkers, innovators, and researchers. By aligning education more closely with the needs of the private sector, Connecticut is ensuring that future generations have the skills to transform our world.

Connecticut also possesses an unparalleled quality of life. The abundance of natural resources, extensive network of cultural and creative assets, and variety of communities make Connecticut a great place to live and do business. Our location is ideal for residents and businesses alike, with ready access to major markets, financial centers, and colleges and universities. Within a one-day drive from Central Connecticut is one-third of the U.S. economy and two-thirds of the Canadian economy, making Connecticut one of the best locations in the nation.1

Connecticut Rankings in the United States2
Healthy Residents / 1st
Share of Finance & Insurance Jobs / 3rd
Advanced Degrees per Capita / 3rd
State Innovation / 4th
Productivity per Capita / 4th
Business Research & Development per Capita / 5th
Scientists & Engineers per Capita / 5th
Energy Efficiency / 6th
Venture Capital Deals per 1 Million Residents / 7th
Patents per 100,000 workers / 7th

1 CT Economic Development Strategy, CT Department of Economic and Community Development

2 Eversource, 2015 Connecticut Economic Review

On February 3, 2016, Governor Dannel P. Malloy gave his State of the State Address to the House of Representatives at the State Capitol. For the most part he addressed the need for change, presenting five budget principles: limit our spending to available resources; address unsustainable and post-employment costs; prioritize funding for core services; and hold state agencies accountable to the public and state legislature for their results. But he also recognized that progress is happening in Connecticut illustrated by these examples:

As a result of Connecticut’s concerted efforts to grow its economy, the private sector has grown more than 80,000 jobs in the last five years.

Since July of 2015, Connecticut has secured employers such as Synchrony Financial and welcomed new employers like Serta Simmons from Massachusetts and MC Credit Partners from New York. These employers alone will create and retain more than 700 jobs in Connecticut.

In January 2016 Electric Boat announced plans to add 800 new jobs to its workforce this year and 4,000 jobs in the years to come.

Connecticut has held onto major employers such as United Technologies and Sikorsky along with their 24,000 employees.

Connecticut is supporting more small businesses than ever before. In 2015 Connecticut’s Small Business Express Program worked with more than 230 businesses to create or retain more than 4,400 jobs.

In a special session last fall, Connecticut’s Legislature made changes to its tax code that both parties agreed were necessary to help our business community. Because of this, employers can continue their strong pace of hiring and investing in the new innovative economy that will drive us into the future.

Connecticut’s community colleges and regents system has answered the challenge for precision manufacturing training. The University of Connecticut has increased its engineering school capacity by fifty percent, helping meet the demand for technology and manufacturing job openings across Connecticut.

The Manufacturing Innovation Fund (MIF) has launched two new programs geared specifically to training. One of those programs has already assisted 88 companies in training their workforce.

Connecticut’s public school teachers are working hard as well. Test scores are up; graduation rates have increased; and we’re closing in on the achievement gap every year.

Housing is more affordable; last year alone Connecticut funded more than 11,000 units of housing.

Connecticut is the first state in the nation to end chronic veteran homelessness and this year will end chronic homelessness for everyone.

And lastly, crime in Connecticut is at a 48-year low. Violent crime is down again from the previous year; the prison population has reached new lows and this year Connecticut closed its fourth prison.

(i)  Existing Demand Industry Sectors and Occupations – Provide an analysis of the industries and occupations for which there is existing demand.

A Detailed Look at Connecticut’s Recovery

Connecticut’s economic recovery has been progressing slower than the nation, but faster than some of its neighboring states. The low point of Connecticut’s recession was in February 2010, but only recently has the state come close to the employment levels it experienced prior to the recession. As of July 2015, it has been 65 months into recovery. Exhibit 1 shows a year-by-year breakdown of growth in nonfarm employment since the trough. This gives us a better idea of how each industry has shaped the state’s current situation. Exhibit 2 provides a visual representation of where each industry was at during each year of the recovery.

The first year of recovery started out strong with an increase of 17,100 jobs. The momentum has been slowly tapering off with each year into recovery. From 2013 to 2014, Connecticut added 12,500 nonfarm jobs, a growth rate of .8%.

Four of the major industries have provided steady growth year-over-year throughout the recovery. Leisure and hospitality has had the largest yearly average percentage increase at 3%, while professional and business services has had the largest average of jobs added each year at 5,300. The education and health services industry has experienced an average of 4,500 added each year of the recovery. Trade, transportation, and utilities is the other sector that has shown consistent growth year-over-year.

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Connecticut Employment / Trough 2010 / Recovery 2011 / Recovery 2012 / Recovery 2013 / Recovery 2014 / Change 2010-11 / Change 2011-12 / Change 2012-13 / Change 2013-14 / % Change 2010-11 / % Change 2011-12 / % Change 2012-13 / % Change 2013-14 /
Total Nonfarm / 1,608.0 / 1,625.1 / 1,640.4 / 1,653.6 / 1,666.1 / 17.1 / 15.3 / 13.2 / 12.5 / 1.1% / 0.9% / 0.8% / 0.8%
Goods Producing / 215.4 / 217.6 / 216.3 / 216.9 / 215.8 / 2.2 / -1.3 / 0.6 / -1.1 / 1.0% / -0.6% / 0.3% / -0.5%
Construction, Nat. Res., & Mining / 50.6 / 52.1 / 52.2 / 54.3 / 56.1 / 1.5 / 0.1 / 2.1 / 1.8 / 3.0% / 0.2% / 4.0% / 3.3%
Manufacturing / 164.8 / 165.5 / 164.2 / 162.6 / 159.7 / 0.7 / -1.3 / -1.6 / -2.9 / 0.4% / -0.8% / -1.0% / -1.8%
Durable Goods / 127.3 / 128.5 / 128.5 / 127.2 / 124.3 / 1.2 / 0.0 / -1.3 / -2.9 / 0.9% / 0.0% / -1.0% / -2.3%
Nondurable Goods / 37.5 / 37.0 / 35.7 / 35.4 / 35.4 / -0.5 / -1.3 / -0.3 / 0.0 / -1.3% / -3.5% / -0.8% / 0.0%
Service Providing / 1,392.6 / 1,407.5 / 1,424.1 / 1,436.7 / 1,450.3 / 14.9 / 16.6 / 12.6 / 13.6 / 1.1% / 1.2% / 0.9% / 0.9%
Trade, Transportation, & Utilities / 289.8 / 292.9 / 295.8 / 298.4 / 301.3 / 3.1 / 2.9 / 2.6 / 2.8 / 1.1% / 1.0% / 0.9% / 0.9%
Wholesale Trade / 62.7 / 63.0 / 63.2 / 63.1 / 63.0 / 0.3 / 0.2 / -0.1 / -0.1 / 0.5% / 0.3% / -0.2% / -0.2%
Retail Trade / 178.2 / 180.2 / 182.2 / 183.6 / 185.6 / 2.0 / 2.0 / 1.4 / 2.0 / 1.1% / 1.1% / 0.8% / 1.1%
Transportation & Warehousing / 41.0 / 41.9 / 43.0 / 44.2 / 45.3 / 0.9 / 1.1 / 1.2 / 1.1 / 2.2% / 2.6% / 2.8% / 2.5%
Utilities / 7.9 / 7.8 / 7.6 / 7.5 / 7.4 / -0.1 / -0.2 / -0.1 / -0.1 / -1.3% / -2.6% / -1.3% / -1.3%
Information / 31.7 / 31.3 / 31.3 / 32.1 / 31.8 / -0.4 / 0.0 / 0.8 / -0.3 / -1.4% / -0.1% / 2.7% / -0.8%
Financial Activities / 135.2 / 135.0 / 133.3 / 130.7 / 128.6 / -0.2 / -1.7 / -2.6 / -2.1 / -0.1% / -1.3% / -2.0% / -1.6%
Finance and Insurance / 116.3 / 116.4 / 114.4 / 111.8 / 109.4 / 0.1 / -2.0 / -2.6 / -2.4 / 0.1% / -1.7% / -2.3% / -2.1%
Real Estate & Rental & Leasing / 18.9 / 18.7 / 18.8 / 19.0 / 19.3 / -0.2 / 0.1 / 0.2 / 0.3 / -1.1% / 0.5% / 1.1% / 1.6%
Professional and Business Services / 190.7 / 197.1 / 203.2 / 206.6 / 211.8 / 6.4 / 6.1 / 3.4 / 5.2 / 3.3% / 3.1% / 1.7% / 2.5%
Prof., Sci., & Tech. Serv. / 86.7 / 88.8 / 90.3 / 92.0 / 95.4 / 2.1 / 1.5 / 1.7 / 3.4 / 2.4% / 1.7% / 1.9% / 3.7%
Management of Comp. & Ent. / 26.3 / 27.4 / 29.1 / 29.5 / 30.6 / 1.1 / 1.7 / 0.4 / 1.1 / 4.2% / 6.2% / 1.4% / 3.7%
Admin. & Waste Serv. / 77.7 / 80.8 / 83.9 / 85.1 / 85.8 / 3.1 / 3.1 / 1.2 / 0.7 / 4.0% / 3.8% / 1.4% / 0.8%
Education and Health Services / 306.9 / 313.3 / 317.6 / 321.2 / 325.0 / 6.4 / 4.3 / 3.6 / 3.8 / 2.1% / 1.4% / 1.1% / 1.2%
Educational Services / 59.2 / 60.9 / 61.6 / 62.2 / 63.5 / 1.7 / 0.7 / 0.6 / 1.3 / 2.9% / 1.1% / 1.0% / 2.1%
Health Care & Social Assistance / 247.7 / 252.4 / 256.0 / 259.0 / 261.5 / 4.7 / 3.6 / 3.0 / 2.5 / 1.9% / 1.4% / 1.2% / 1.0%
Social Assistance / 45.6 / 47.5 / 49.1 / 50.8 / 52.8 / 1.9 / 1.6 / 1.7 / 2.0 / 4.2% / 3.4% / 3.5% / 3.9%
Leisure and Hospitality / 133.6 / 137.3 / 142.6 / 147.3 / 151.0 / 3.7 / 5.3 / 4.7 / 3.7 / 2.8% / 3.9% / 3.3% / 2.5%
Arts, Entertainment, & Rec. / 23.6 / 24.0 / 24.9 / 25.8 / 26.6 / 0.4 / 0.9 / 0.9 / 0.8 / 1.7% / 3.7% / 3.6% / 3.1%
Accommodation & Food Serv. / 110.0 / 113.3 / 117.8 / 121.5 / 124.4 / 3.3 / 4.5 / 3.7 / 2.9 / 3.0% / 4.0% / 3.1% / 2.4%
Other Services / 60.5 / 60.4 / 61.7 / 62.2 / 63.0 / -0.2 / 1.3 / 0.5 / 0.8 / -0.3% / 2.2% / 0.9% / 1.2%
Government / 244.2 / 240.3 / 238.5 / 238.2 / 237.9 / -3.9 / -1.8 / -0.3 / -0.4 / -1.6% / -0.7% / -0.1% / -0.2%
Federal / 19.7 / 18.0 / 17.6 / 17.3 / 17.4 / -1.7 / -0.4 / -0.3 / 0.1 / -8.6% / -2.2% / -1.7% / 0.6%
State / 67.4 / 67.2 / 66.8 / 66.9 / 67.0 / -0.2 / -0.4 / 0.1 / 0.1 / -0.3% / -0.6% / 0.1% / 0.1%
Local* / 157.1 / 155.1 / 154.1 / 154.0 / 153.4 / -2.0 / -1.0 / -0.1 / -0.6 / -1.3% / -0.6% / -0.1% / -0.4%
*Includes Indian tribal government employment
Source: B.L.S. Current Employment Statistics

Exhibit 1 Growth in Recovery of Annual Connecticut Nonfarm Employment (in thousands)

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Meanwhile, two industries have been a drag on the current recovery. The employment levels in financial activities and government have been decreasing year-over-year. Government started in 2010 to 2011 with its largest drop of 3,900 jobs and has been slowing down its job losses with only 400 from 2013 to 2014. Local government is the largest subsector of government and includes Indian tribal employment. Financial activities are showing an opposite trend. The sector only lost 200 jobs the initial year of recovery, but the most recent year-over-year figure shows it lost 2,100 jobs.

Exhibit 2

(ii) Emerging Demand Industry Sectors and Occupations – Provide an analysis of the industries and occupations for which demand is emerging.

Industry Employment Projections Short-Term

The current short-term projections developed by the Department of Labor’s Office of Research are for the two-year period from the third quarter of 2014 to the third quarter of 2016 are presented in Exhibit 3. Connecticut is expected to continue on its rebound from the recent recession over the period. The average annual growth rate is expected to be 0.7%. This will potentially bring the employment level to 1,823,049 by the third quarter of 2016.

The goods producing industries are expected to contract at an annual average rate of 0.6%. The largest contributor to this is the manufacturing industry. Over the two-year period, it is expected to drop by 5,454 jobs. Construction has a brighter outlook, as it is projected to grow on average 2.2% annually.

The much larger service providing industries are forecasted to grow 0.9% on an annual average basis. Exhibit 4 shows the extent to which service providing industries make up Connecticut’s employment. The projected growth is largely aided by education and health services. The industry is expected to grow 1.4% annually, keeping with recent trends. Other significant contributions to the anticipated employment growth are the trade, transportation, and utilities, professional and business services, and leisure and hospitality sectors. Information, financial activities, and government are all likely to shrink over the next two years.