A new report from the Connecticut Business & Industry Foundation for Economic Growth & Opportunity warns that the state’s economic growth is increasingly restricted by a shrinking workforce and a disconnect between education programs and employer needs.
A new report from the Connecticut Business & Industry Foundation for Economic Growth & Opportunity warns that the state’s economic growth is increasingly restricted by a shrinking workforce and a disconnect between education programs and employer needs.
The “Connecticut Workforce & Education Strategy Blueprint,” released Thursday during CBIA’s 2026 Connecticut Workforce Summit at the Connecticut Convention Center, finds that employers across the state are struggling to fill open jobs, citing both a declining labor pool and a lack of job-ready skills among applicants.
As of Dec. 2025, the state had 65,000 unfilled jobs, down from 76,000 open positions a year earlier, according to the most recently available data from the U.S. Bureau of Labor Statistics.
Business leaders say the gap is especially acute in high-demand fields, including manufacturing, health care and technology.
According to the report, the state’s education and workforce systems are not sufficiently aligned, leaving many students unprepared for available jobs while companies face persistent hiring challenges. It highlights deficiencies in both technical skills and so-called “durable skills,” such as communication, problem-solving and teamwork.
The findings come as Connecticut continues to grapple with demographic headwinds, including an aging population and outmigration, which have reduced the number of working-age residents. At the same time, barriers such as child care costs, housing affordability and transportation are limiting workforce participation.
To address these challenges, the report calls for a more coordinated, skills-focused approach to workforce development.
Among the report's top recommendations is expanding access to work-based learning opportunities, including internships, apprenticeships and other “earn-and-learn” programs that connect students directly with employers.
The association also urges policymakers and educators to strengthen career pathways that link K-12 schools, colleges and training programs with in-demand industries. This includes promoting alternatives to traditional four-year degrees, such as certifications and technical training aligned with workforce needs.
In addition, the report stresses the importance of shifting toward a “skills-based” education model, where hiring and training decisions are driven more by demonstrated competencies than by formal credentials alone.
“Connecticut’s economy depends on whether we can connect students to real career opportunities earlier and more effectively,” said CBIA Foundation director Dustin Nord.
The foundation also calls for improving coordination among state agencies, educational institutions and the private sector, as well as improving the use of data to guide workforce investments and measure outcomes.
Finally, the report also recommends reducing structural barriers that prevent people from entering or remaining in the workforce, including expanding access to affordable child care and reliable transportation.
The foundation said addressing these issues is critical to building a sustainable talent pipeline and ensuring the state’s long-term economic competitiveness.
The CBIA Foundation for Economic Growth & Opportunity is a 501(c)(3) organization created in 2023 by CBIA, the state’s largest business association, to address the evolving needs of the state’s economy.
