Connecticut’s Changing Demographics Foreshadow Declining Workforce Income

Back • Publication Date: February 27th, 2012

Authors: Orlando J. Rodriguez, M.A.

Downloads: Download #1

This report finds that closing Connecticut's opportunity gaps will be necessary for the future economic health and quality of life in the state as a whole. Among the findings:

  • A growing number of retirees and an increase in lower-paid minority populations mean that Connecticut is losing higher-income workers (older, more educated whites) while adding lower-income workers (younger, less educated minorities). This convergence of demographic trends will hamper the state's economic growth and its ability to pay for the growing costs of an aging population.
  • If racial and ethnic income gaps continue to grow at recent rates, the average per capita income for Connecticut's working age population will decline by 8.6% between 2010 and 2030.
  • However, if racial income gaps are closed by 2015 and incomes for all workers are raised to the same level as white workers, then per capita income for the working-age population will increase by 12% between 2010 and 2030.

To help in raising incomes of lower-wage workers, we recommend investments in education and training; attracting new businesses and out-of state workers; and offsetting declines in state revenue through progressive income and estate tax reforms.