Connecticut’s economy is affected by the economic policies of the federal government. If the incoming administration imposes high tariff rates, imports will fall and the value of the dollar in world markets will rise, hurting the U.S. export sector.Retaliation by other countries will exacerbate this outcome. Since Connecticut is an export-oriented state, its economy will […]
Connecticut’s economy is affected by the economic policies of the federal government. If the incoming administration imposes high tariff rates, imports will fall and the value of the dollar in world markets will rise, hurting the U.S. export sector.
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Farhad Rassekh
Retaliation by other countries will exacerbate this outcome. Since Connecticut is an export-oriented state, its economy will grow only moderately.
Connecticut should experience employment growth in 2025, but not as impressive as in 2024.
Connecticut’s unemployment rate has recently fluctuated between 3.2% and 3.8%. At such a low rate, to create more jobs (adding more people to the payroll) would require a significant migration of businesses as well as skilled and professional people into Connecticut.
Without the migration, I would expect a net job gain of about 3,000 to 4,000 jobs in 2025.
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This analysis rests on the expectation that no drastic change will take place at the state level (such as a tax increase).Â
Farhad Rassekh is a professor of economics at the University of Hartford.
