Similar to the Economic Policy Institute’s State of Working America, the State of Working XX (SWXX) is a series of reports produced by state EARN groups describing the economic conditions for working families in their state. SWXX reports provide a comprehensive description of state economic conditions, often with a focus on labor market conditions. SWXX reports provide data and analysis on job growth, unemployment, wages, incomes, poverty rates, taxes, wealth, immigration, and other issue areas relevant to current state economic conditions and policy discussions. Many SWXX reports also include tailored and timely policy recommendations for strengthening economic conditions for workers in each state.
State of Working Connecticut: Increasing the Labor Force and Job Growth by Making Wages Fairer
- July 22, 2025
- Connecticut Voices for Children
- Patrick R. O'Brien
Connecticut’s job growth has lagged the national recovery since the pandemic-induced recession, continuing a decades-long trend. A major reason is the state’s slower labor force growth, which reflects changes in both the size of the working-age population and the labor force participation rate of that population. Among prime-age individuals (25 to 54 years old), the working-age population and the labor force participation rate both declined, reducing the size of the state’s labor force from 2019 to 2024. Among women, the working-age population grew but a decline in the labor force participation rate more than offset the population growth, further reducing the size of the state’s labor force. These trends have made it harder for employers to fill open jobs, weakening the state’s overall economic recovery and limiting its ability to reduce long-term debt while also providing necessary support for families and children.
This year’s State of Working Connecticut report focuses on increasing the state’s labor force and job growth by making wages fairer—defined as increasing wage growth, reducing wage inequality, and narrowing gender, racial, and ethnic wage gaps. Fairer wages, combined with greater work flexibility, improve the financial return to work and make it easier to balance paid employment with caregiving responsibilities. This is especially important for prime-age individuals and women, who are more likely to manage caregiving and weigh the financial and time tradeoffs between paid work and unpaid care. The resulting increase in the labor force and job growth is also especially important for Connecticut because it would make it easier for the state to pay down its more than $70 billion in long-term debt while also expanding critical public investments in families and children.