{"id":3252,"date":"2021-12-24T12:26:37","date_gmt":"2021-12-24T12:26:37","guid":{"rendered":"http:\/\/CBMiemh0dHBzOi8vd3d3Lm5ocmVnaXN0ZXIuY29tL2J1c2luZXNzL2FydGljbGUvMTIta2V5LWlzc3Vlcy10aGF0LXNoYXBlZC1Db25uZWN0aWN1dC1zLWVjb25vbXktMTY3MjcxNDIucGhwP3NyYz1uaHJocGJ1c2luZXNz0gEA"},"modified":"2021-12-24T12:26:37","modified_gmt":"2021-12-24T12:26:37","slug":"12-key-issues-that-shaped-connecticuts-economy-in-2021-new-haven-register","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=3252","title":{"rendered":"12 key issues that shaped Connecticut’s economy in 2021 – New Haven Register"},"content":{"rendered":"
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It was a development few prognosticators saw coming at the onset of the COVID-19 pandemic \u2014 but as the federal government propped up states with a flood of relief and stimulus funding, the Connecticut budget floated free of deficits at the cost of state services and jobs.<\/p>\n

With public health concerns dominating the first year of the pandemic, Connecticut\u2019s economic recovery took center stage in 2021, as vaccinations gained steam in the early part of the year, emboldening many employers to hire back workers. But by summer, many were running up against a labor shortage that overtime and hiring bonuses only dented.<\/p>\n

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While the official unemployment rate stood at 6 percent in November, the state was on the cusp of weekly unemployment claims dropping below their levels in the weeks prior to March 2020 when Gov. Ned Lamont declared a public health emergency, putting limitations on many businesses. Still, the state remains 74,000 jobs short of the nearly 1.7 million in November 2019 on the eve of the first reports of COVID-19.<\/p>\n

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During the pandemic, the state Department of Labor paid out more than $10 billion in unemployment assistance, with businesses matching that through the U.S. Department of the Treasury\u2019s Paycheck Protection Program that awarded forgivable loans for those that do not lay off workers.<\/p>\n

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Those programs, along with stimulus checks to families and other pandemic aid, helped Connecticut keep up tax revenue with extra to spare. Since the start of the pandemic, the state has put away $1.6 billion to cover future obligations to retirees, and maintain its \u201crainy day\u201d fund at roughly $3 billion.<\/p>\n

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But speaking in early December at an economic summit in Hartford sponsored by the Department of Economic and Community Development, Lamont described Connecticut\u2019s surpluses as \u201corganic\u201d that can be sustained whenever federal pandemic assistance fades.<\/p>\n

\u201cChronic fiscal crisis, lurching from deficit to deficit \u2014 enough already,\u201d Lamont said. \u201cWe have a long way to go \u2014 I\u2019m not putting up the \u2018mission accomplished\u2019 banner, but I want you to know we have made extraordinary progress.\u201d<\/p>\n

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More Business<\/p>\n<\/div>\n<\/section>\n

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Connecticut\u2019s gains were seen in many areas in 2021, from real estate sales continuing to thrive, more companies moving to the state, the revitalization of downtown districts, legalization of recreational marijuana and the launch of sports betting.<\/p>\n

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As the year comes to a close, Hearst Connecticut Media Group looks back at some of the biggest business and economic stories that impacted the state in 2021.<\/p>\n

Home sales build on suburban flight<\/h2>\n

Few expected this year\u2019s housing market to top the 2020 pandemic stampede<\/a> \u2014 but over the first 11 months of this year, Connecticut home sales were up 4.8 percent to nearly 50,000 homes sold, according to Berkshire Hathaway HomeServices New England Properties.<\/p>\n

Homeowners continued to cash out<\/a> during a historic market, selling at prices<\/a> they could not have obtained without the median home price rising 12 percent. That put the squeeze on would-be buyers who saw their \u201cbest-and-final\u201d offers beat out<\/a> repeatedly. For those resigned to another year of apartment living, many absorbed rent hikes<\/a>.<\/p>\n

Dawn of sports wagering in Connecticut<\/h2>\n

On Sept. 30 at Mohegan Sun, Lamont bet $50<\/a> on the Connecticut Sun to beat the Chicago Sky, launching sports wagering in Connecticut. The Sun won and Connecticut aims to as well with sports gambling and online casino games, generating $1.7 million in revenue in October.<\/p>\n

Fantasy giants DraftKings and FanDuel paired with Foxwoods and Mohegan Sun, with SugarHouse and the Connecticut Lottery to also get in on the action. Connecticut receives 13.75 percent of revenue on sports bets, and 18 percent for online casino games, but nothing for sports wagers placed at Foxwoods and Mohegan Sun.<\/p>\n

Stamford draws new corporate employers<\/h2>\n

Five years after General Electric moved its headquarters out of Connecticut<\/a>, the state is seeing renewed appeal<\/a> as a corporate destination during the COVID-19 pandemic.<\/p>\n

In June, tobacco giant Philip Morris International announced it would move its headquarters<\/a> to Stamford from New York City. Other New York transplants include industrial systems manufacturer ITT<\/a> and cryptocurrency innovator Digital Currency Group<\/a>.<\/p>\n

A decade after moving to Stamford, meanwhile, Charter Communications got the keys to its new headquarters complex<\/a> there. This year, new U.S. Census Bureau data showed that Stamford overtook New Haven to become the state\u2019s second-largest city<\/a>.<\/p>\n

Weak links in supply chain<\/h2>\n

As Cindi Bigelow said during the DECD summit in December, when an Asian supplier demanded $1 million to cover the cost of shipping a key ingredient for Bigelow Tea across the Pacific Ocean, she had no choice but to sign the check.<\/p>\n

With aerial photos in July showing dozens of ships waiting to enter California ports, the supply-chain crisis cascaded<\/a> through the Connecticut economy for the remainder of the summer and fall, with sporadic shortages for some goods and prices rising on everything from food<\/a> to building supplies<\/a>.<\/p>\n

Entering 2022, labor shortages remain acute for key jobs<\/a> like truck drivers<\/a> to deliver products.<\/p>\n

Downtown districts reinvigorated<\/h2>\n

In the second year of pandemic uncertainty, one unexpected beneficiary emerged \u2014 Connecticut\u2019s downtown commercial districts, which had endured an extended stretch of malaise as shoppers turned to Amazon<\/a>.<\/p>\n

Many storefronts are full for the 2021 holiday shopping season, and if malls continue to grapple with empty anchor pads once occupied by Lord & Taylor<\/a>, Sears and other historic brands, they are developing alternatives for entertainment and apartments.<\/p>\n

While towns are peppered with plenty of options for dining out these days, the sector continues to struggle<\/a>, according to the Connecticut Restaurant Association, with receipts having yet to bounce back to pre-pandemic levels.<\/p>\n

Bank mergers hit Bridgeport, Waterbury<\/h2>\n

Some locales lost out. It was the phone call<\/a> that prompted nearly 750 job cuts<\/a> in Connecticut, when M&T Bank\u2019s CEO checked in with his People\u2019s United Bank counterpart Jack Barnes about a takeover.<\/p>\n

Within two months, the executives had a $7.6 billion deal<\/a> in place. With the vast majority of job cuts hitting the Bridgeport headquarters of People\u2019s United, Bridgeport Mayor Joe Ganim vowed to close<\/a> the city\u2019s accounts with the company.<\/p>\n

In a separate deal, Webster Bank chose Stamford<\/a> as its new headquarters having long been based in Waterbury, after its own $10 billion merger<\/a> with Sterling National Bank.<\/p>\n

Sunset for pandemic assistance<\/h2>\n

Sept. 4 \u2014 it was the date tens of thousands of Connecticut residents had circled on their calendars<\/a>, when a $300 weekly boost for unemployment compensation reached its sunset<\/a> as well as jobless aid for self-employed workers<\/a>. Thousands of Connecticut employers had the date circled as well, in hopes that the expiration of benefits<\/a> would prompt more people to apply for available jobs<\/a>.<\/p>\n

While a number of pandemic aid programs continue into 2022 \u2014 including UniteCT, providing rent and utilities assistance<\/a>, and the Homeowner Assistance Fund, providing mortgage relief<\/a> \u2014 the expectation by labor departments is for people to resume working<\/a> for a living.<\/p>\n