For her new economic director, Gov. M. Jodi Rell tapped a one-time transportation official from New York City.
As it turns out, Connecticut”™s economy is still on a speed-limit ride.
University of Connecticut economists predict the state will reach a record total of jobs this year, a mark that was set in the pedal-to-the-metal Internet economy of July 2000, when job totals reached 1.7 million.
Through March, Connecticut had 1.69 million jobs, up 19,000 from March 2006, and needs to add 8,000 more jobs this year to reach the milestone.
The government recently elevated Connecticut”™s employment figures in 2006 by 6,000 jobs. Economists indicated that small businesses, whose job totals are tougher to track grew faster than anticipated. So far this year, the state”™s new business starts are running 3.7 percent ahead of the pace in 2006.
The Fairfield County area added 3,000 jobs in March, with growth in the Danbury labor market area trailing the job- growth rate in lower Fairfield County. Danbury has one of the lowest unemployment rates in the Northeast.
The state”™s unemployment rate dipped to 4.1 percent in March, down from 4.2 percent in February and 4.3 percent in March 2006. The national unemployment rate was 4.5 percent in March.
Only one employer filed notice in April of a mass layoff involving 50 or more workers, with Anthem Blue Cross and Blue Shield planning to cut 65 workers in June from a North Haven document processing office. According to the U.S. Department of Labor, there were six mass layoffs already under way in Connecticut in March.
Connecticut”™s 1.2 percent job-growth rate tops all states in the Northeast, though it still trails the nation”™s overall 1.4 percent rate.
With the Connecticut Department of Economic and Community Development running on cruise control since late last year, Rell nominated Joan McDonald to lead DECD. McDonald previously was senior vice president of the New York City Economic Development Corp. McDonald also held roles with city and state transportation departments, and with Metro-North Railroad.
While former Commissioner James Abromaitis came from a banking background, McDonald has previous experience in planning large economic development projects, negotiating leases for New York City”™s airports and overseeing the creation of a mixed commercial and residential development.
Rell said the appointment is in line with her goals to coordinate economic development with environmental, energy and transportation policies in an attempt to preserve the state”™s character.
Connecticut”™s growth is occurring despite a nearly three-quarters of a percentage-point hike in the prime interest rate in the past year, a sharp dip in new housing starts and an aging work force that is challenging companies.
