Connecticut was late to feel the impacts of the 2008 recession and will be late to shed them, economists from the New England Economic Partnership said in a report today.
NEEP, which has six executives from Connecticut on its board, said it expects the state to see better job growth, home prices and personal incomes in 2014 than compared to 2013.
But the group warned that federal payroll and sequestration cuts and income tax hikes are dragging down potential gains.
In addition, some of Connecticut’s core industries — like insurance and investment banking — are not expected to experience a stronger recovery until between 2015 and 2017.
Both NEEP and Moody’s Analytics predict that the state’s labor force will grow in the coming years, after contracting in 2012.
The report said a delay in some defense and sequestration cuts has also brightened predictions of job gains.
NEEP expects job increases of 18,700 next year. That compares to an expected 14,400 jobs this year and 14,100 in 2012.
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