The State of Working CT, 2002

Douglas Hall, Ph.D.

Connecticut Voices for Children

September 19, 2002

www.ctkidslink.org

CT’s Productivity Up, and Pulling Away from National GDP

CT Gross State Product Per Capita, and US GDP: 1979, 1989, and 1999 (1999$)

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Connecticut $25,233 $37,555 $46,245

US GDP $23,708 $28,446 $34,138

1979 1989 1999

CT Loses Ground in Employment

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

Growth in Payroll Employment, 1979-2001: CT, Northeast, & US(Annualized Change)

Connecticut 1.8% 0.1% -0.6%

NORTHEAST 1.5% 0.6% 0.2%

TOTAL U.S. 1.8% 1.8% 0.3%

79-89 89-00 00-01

CT Employment, 1989-2002: Recession, Recovery, and Recession

(thousands of jobs)

-100

-50

0

50

100

150

Manufacturing -66.5 -35.1 -23.3

Trade -52.2 37.7 -5.8

Construction and Mining -30.4 16.8 -0.9

FIRE -11.2 1.5 -0.5

T.C.U. -4.6 12.2 -3.4

Government -2.1 36.3 6.3

Services 8.8 111.5 1.8

Feb-89 to Dec-92 Dec-92 to Jul-00 Jul-00 to June-02

Manufacturing Employment Down, Service Employment Up

CT, USA Manufacturing Employment, 1979-2001

10%

15%

20%

25%

30%

35%

Shar

e of

tota

l em

ploy

men

t

Connecticut 31.2% 21.6% 15.1%

TOTAL US 23.4% 18.0% 13.4%

1979 1989 2001

CT, USA Service Employment: 1979-2001

15%

20%

25%

30%

35%

Connecticut 19.5% 25.4% 32.1%

Total US 19.1% 24.9% 31.0%

1979 1989 2001

The Services Sector Covers a Wide Range of Wages

Subsector Average Wage

(2000$)

# Employ

ed

% of Services SectorPersonal services $20,209 18,140 3.4%

Hotel and other lodging places

$20,815 11,604 2.2%

Museums and botanical gardens

$21,372 2,057 0.4%

Social services $21,740 46,916 8.8%

Motion pictures $21,751 4,178 0.8%

Amusement and recreation services

$24,620 37,618 7.1%

Educational services $38,254 40,398 7.6%

Health services $38,865 158,160

29.8%

Business services $44,125 117,886

22.2%

Legal services $55,940 14,652 2.8%

Engineering, accounting and management

$73,225 39,562 7.4%

Miscellaneous services $79,506 854 0.2%

Married Couples Working Nearly Full Time/Full Year

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800

Hours Worked Per Year by Married Couple Families: Connecticut Compared to US, Late 1970s to Late 1990s

CT 3,281 3,704 3,701

TOTAL US 3,274 3,510 3,706

1979-81 1988-90 1998-00

…Patterns Vary by Income Though…

-

1,000

2,000

3,000

4,000

5,000

Hours Worked By Connecticut Married Couple Families (by income quintiles): Late 1970s to Late 1990s

1979-81 3,281 2,489 3,064 3,367 3,711 3,769

1988-90 3,704 3,153 3,190 3,486 4,028 4,655

1998-00 3,701 2,807 3,635 3,854 3,962 4,231

All married couple

First fifth Second fifth Third fifth Fourth fifth Top fifth

…as do comparisons with national patterns

2,500

3,000

3,500

4,000

4,500

Hours Worked by Married Couple Families in Late 1990s: CT and US(by income quintiles)

Connecticut 2,807 3,635 3,854 3,962 4,231

Total US 2,668 3,537 3,872 4,157 4,285

First fifth Second fifth Third fifth Fourth fifth Top fifth

Unionization Rates in CT are in Decline…

Unionization Rates, 1984-2001

10%

15%

20%

25%

Connecticut 19.7% 18.5% 20.2% 15.8%

United States Total 18.2% 16.4% 14.9% 13.5%

1984 1989 1995 2001

…but the Northeast maintains higher rates than the national average

September 11…and Unemployment in CT

…layoffs attributed to Post 9/11 economic downturn…

…but overall unemployment rates mirror a range of other economic indicators

Education is the Pathway to Self-sufficiency: CT Does Better Than US in High School

Graduation Rates…

Educational Attainment, Proportion of Populationwith Less than High School Education, 2000

0%2%4%6%8%

10%12%14%

Connecticut 6.6% 7.4% 5.8%

NORTHEAST 8.6% 9.9% 7.2%

TOTAL US 10.5% 12.3% 8.6%

All Men Women

…and in Advanced Degrees

Educational Attainment: Proportion with Advanced Degree, 2001

0%

2%

4%

6%

8%

10%

12%

14%

16%

Connecticut 13.1% 13.6% 12.7%

NORTHEAST 11.3% 11.4% 11.2%

TOTAL US 8.9% 9.2% 8.6%

All Men Women

Low Wages in CT Exceed US and Regional Wages…

Low Wages (20th percentile), 1979-2001($ 2001)

$6.00

$6.50

$7.00

$7.50

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

Connecticut $8.20 $9.65 $9.01 $9.35 $9.82

NORTHEAST $7.90 $8.24 $7.96 $8.29 $8.59

Total US $7.63 $7.15 $7.14 $7.99 $8.07

1979 1989 1995 2000 2001

…As have Median Wages…

Median Wages (50th percentile), 1979-2001($ 2001)

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

Connecticut $12.40 $14.57 $15.13 $15.40 $16.15

NORTHEAST $12.20 $13.50 $13.16 $13.59 $14.10

Total US $11.93 $11.90 $11.69 $12.60 $12.88

1979 1989 1995 2000 2001

…And High Wages

High Wages (80th percentile), 1979-2001($ 2001)

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

Connecticut $19.04 $22.51 $24.63 $25.23 $26.22

NORTHEAST $19.02 $21.10 $21.96 $23.45 $23.90

Total US $19.05 $19.78 $19.97 $21.49 $21.75

1979 1989 1995 2000 2001

But CT’s Wages Have Grown Unevenly…

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Low Wages (20th percentile) $8.20 $9.65 $9.01 $9.35 $9.82

Median Wages (50th percentile) $12.40 $14.57 $15.13 $15.40 $16.15

High Wages (80th percentile) $19.04 $22.51 $24.63 $25.23 $26.22

1979 1989 1995 2000 2001

CT's Wages: 1979-2001(2001$)

…Resulting in An Enlarging Divide, or “Pulling Apart” in Income…

$0

$50,000

$100,000

$150,000

$200,000

Income Quintiles (20% of Families, by Income)

Average Income of Connecticut Families: Late 1970s to Late 1990s(1999$)

1978-1980 $18,223 $36,234 $49,989 $65,577 $111,042

1988-1990 $24,024 $45,934 $65,127 $87,391 $149,558

1998-2000 $19,351 $43,266 $66,146 $94,217 $181,194

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