Connecticut’s working class is getting hit harder than nearly every other state by the rising cost of living and the impact of inflation, according to a new report.
The “State of Working Connecticut” report, published by the advocacy group Connecticut Voices for Children, analyzes changes to policy and affordability that affect families.
The report homed in on three newer areas of concern for Connecticut families: the rise in inflation, the state’s high unemployment rate and cuts to federal aid.
“We're publishing this report as a reminder that our economy isn't the stock market,” said Emily Byrne, the group’s executive director. “Rather, our economy is people. Disinvesting in people will only exacerbate the longstanding problems that the state faces, and with emerging economic challenges that deeply impact workers and households, now is the time to double down on Connecticut's residents.”
The cost of living in Connecticut is outpacing increases in salaries. But the report outlines policy recommendations to address the affordability crisis.
“Our goal is to increase the purchasing power of workers’ earnings, grow the labor force and output growth, and strengthen the state's capacity to provide support where it's needed most,” Byrne said.
Over the last year, Connecticut’s unemployment rate rose faster than any other state, and is tied for the highest unemployment rate in the country, according to the report. Along with unemployment, Connecticut doesn’t have some key programs that would protect workers and their pay.
CT Voices for Children recommends establishing a law that would require businesses to set their work schedules 14 days in advance so that it makes it easier for working parents to plan their lives.
“Connecticut requires zero days of advance notice of work schedules, and importantly, unpredictable schedules make it difficult for many hourly workers to arrange child care, hold a second job, or pursue additional education, limiting their current earnings and paths to higher wages,” report author Patrick O’Brien said.
Another way to protect Connecticut workers’ wages is by funding additional state investigators tasked with ensuring workers are being paid fairly. The state’s Labor and Public Employees Committee recommended Connecticut hire 36 additional investigators, but 23 positions remain open, according to the report.
Inflation is a nationwide issue, but with Connecticut having the most constrained housing market in the country, constructing more housing can help alleviate the strain.
“During this current economic cycle, housing price increases have exceeded total price increases, meaning once more that low- and middle-income households are often more harmed by inflation,” O’Brien said.
Cuts to federal aid programs cause more uncertainty for working families over where and when they’ll be able to find child care, afford food or provide medical care, the report said.
For the fiscal year, Connecticut is losing nearly $1 billion in SNAP and Medicaid benefits, according to the report.
“Not only is that going to hurt households directly that don't get those benefits, it's actually going to slow the growth of our spending cap through slower personal income growth,” O’Brien said. “You're seeing a circular dynamic here, where you're going to need to provide more support in the budget to help families, but also if you don't provide that support, you're going to have more restrictive fiscal controls.”
