State Workforce Will Shrink Unless Wage Gap Closes

A report by Connecticut Voices for Children finds that closing Connecticut's “opportunity gaps,” as evidenced in the state’s changing demographics, will be necessary for the future economic health and quality of life in the state as a whole. The report, “Connecticut's Changing Demographics Foreshadow Declining Workforce Income,” noted that Connecticut, with the 7^th oldest population in the nation in 2010, is projected to have a declining working-age population after 2015.  On the national level, the working-age population is predicted to increase.  In 2010, 14 percent of Connecticut’s population was age 65+, which is expected to increase to 22 percent (1 in 5) by 2030.

The report found that if racial and ethnic income gaps continue to grow at recent rates in Connecticut, the average per capita income for the state’s working age population will decline by 8.6% between 2010 and 2030.  However, if racial income gaps are closed by 2015 and incomes for all workers are raised to the same level as white workers, then per capita income for the working-age population will increase by 12% between 2010 and 2030.