Connecticut’s population, after a few years of decline, saw a slight uptick in the most recent numbers released by the U.S. Census Bureau.
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Alissa K. DeJonge
Vice President of Research, Connecticut Economic Resource Center Inc.
Connecticut’s population, after a few years of decline, saw a slight uptick in the most recent numbers released by the U.S. Census Bureau.
The population increase was due to natural population growth that was just ahead of net (negative) migration. Since 2010, Connecticut has seen a steady increase of retirement-age population, while the school-age population (below 25 years) and working-age residents (25-64 years) experienced small but steady decreases.
The large generation of Baby Boomers continues to retire while the next generation, the Gen Xers, is a smaller age group, which will further reduce the overall level of economic demand and output.
The demand decrease should eventually be alleviated by the larger Millennial generation, but in the mid-term, there could very well be a dip in the amount of GDP produced in the state, just because of these demographic shifts.
Even though the demographic trends are not particularly favorable for Connecticut right now, there are some industries that have seen growth during 2018 and should continue through 2019.
One bright spot for Connecticut's economy is defense manufacturing. Demand from the federal government will continue to boost the number of F-35s, Black Hawk helicopters, submarines and other weapons systems made in Connecticut.
Another industry that looks extremely promising for Connecticut in 2019 is energy, particularly in alternative energy including wind.
This industry has seen growth over the past few years with the installation of household solar, and with the state's increased efforts to add renewable energy to the generation mix.
One other industry to watch in Connecticut is wholesale trade and distribution due to the influence of e-commerce. The increasing presence of Amazon in the state is bringing new investments into this industry.
One industry that is undergoing a large transition is retail, because of the effect of online shopping. Traditional storefront retailers that remain profitable during this transition will adopt a hybrid approach of retaining less inventory on-site and enhancing the shopping social experience.
Return to HBJ's 2019 economic forecast landing page
| What’s your 2019 economic outlook for Connecticut? | Moderate growth |
| How many jobs will Connecticut add? | 15,000 |
| What will Connecticut’s unemployment rate be at the end of 2019? | 4% |
| What type of GDP growth will Connecticut see in 2019? | 1% |
| Which industry will add the most jobs? | Defense |
| Which industry will lose the most jobs? | Retail |
