Connecticut: Legislative Panel Issues Report on Reemployment Challenges of Older Workers

The Connecticut General Assembly's Office of Program Review and Investigations has issued its finding from its study of the challenges facing older unemployed workers (ages 50 and older), including the competing demands to have an income while completing needed job-related training. According to the "Staff Findings and Recommendations Highlights," there are many programs and services to assist with the reemployment of unemployed workers, including older workers, but that only a few programs are specifically for older adults. Accordingly, "there is no comprehensive, easily accessible way for unemployed residents to find out about these resources." Looking at existing programs overall, programs with an on-the-job-training component had a higher reemployment rate of 74% compared with 50% for programs without the component.

The report made several recommendations, including:

• Prohibit potential employers from publishing job vacancy advertisements that discriminate against the long-term unemployed.
• Develop summary sheets and informational campaigns to inform job seekers of the resources available, address misperceptions about the state's apprenticeship program, and publicize the advantages of hiring older workers.
• The CTWorks Career Centers should consider requirement of a professional resume writer credential and expansion of online learning.

In addition to the report highlights, the full report, as well as an executive summary, are available online. The report has been welcomed by the House Chair of the Program Review and Investigations Committee. Source: Office of Program Review and Investigations Studies: Reemployment of Older Workers (December 18, 2013)

Connecticut: Report Suggests Aging Workforce Harming Economic Recovery

According to a report from the Connecticut Center of Economic Analysis at the University of Connecticut, the state is recovering from the recession, "but without the robustness needed to restore reasonably full employment and household income." Furthermore, "Connecticut faces a dismal future, with its 65 and over population doubling, its working age population shrinking while its quality deteriorates, and its under‐18 cohort contracts." However, according to "Recovery Stirring? But will Connecticut be too Old to Compete? The Connecticut Economic Outlook: May 2012," the state has "one asset that could vault it to the top of the growth charts and, critically, rescue it from its current bleak demographic trajectory."

According to the report's authors, the challenge for Connecticut is to replace all 120,000 jobs lost since 2008 and to create substantially more--at least 50,000 net net--to retain and attract new workers, to change its demographic future. To do this, they recommend that the state "unleash existing stranded tax credits in a highly targeted program to drive economic growth.  If the $2.5 billion in tax credits currently sitting unused and unusable on balance sheets could be redeemed ex post against the cost of major capital projects."

Given current labor force patterns and participation rates, with an aggressive expansion policy, Connecticut could effectively compete both to retain its own educated youth and to pull in thousands of new workers, significantly exceeding its previous employment level.  In the longer term, together with the initiatives in place, aggressive use of the stranded tax credits would launch Connecticut on a long‐term dynamic path that would continue expanding employment opportunities for two or more decades.

Source: The CT Mirror "Report: Aging workforce threatens state's economic recovery" (May 23, 2012)

Connecticut: Governor Signs Bill To End Social Security Offset for Worker's Comp

On May 30, 2006, Connecticut Governor M. Jodi Rell signed into law a bill to end the policy of cutting the worker's compensation payments to disabled employees if those workers collect or qualify for Social Security, one of ten states to do so. Passed by the state senate as Senate Bill No. 25, proponents said the offset hurt aging residents who've kept their jobs or returned to the workforce to supplement their income.

Source: Public Act 06-84 and legislative history.

Additional Source: "Senators say state's older employees hurt by worker comp policy" Associated Press (April 28, 2006)

Connecticut: Repeal of Social Security Offset from Workers Comp Advances

As of May 17, the legislation (Public Act 06-84) in Connecticut to repeal the social security offset from workers' compensation benefits had passed both houses and had been trasmitted to the Secretary of State. See eaelier Aging Workforce News article. Opponents of the legislation have stated that "the cost of this proposal (SB-25) to Connecticut employers is expected to be $8 million in the first year alone, according to a recent impact statement issued by the National Council on Compensation Insurance (NCCI). That increased cost would continue in future years."

Source: Senate Bill 25 Legislative History

Connecticut Manufacturers Cannot Fill Jobs--Aging Workforce A Big Factor

According to the "2005 Survey of Current and Future Manufacturing Jobs in Connecticut," conducted by the Connecticut Business & Industry Association, Connecticut manufacturers are having difficulties filling job openings because of the lack of skilled workers looking for employment with many manufacturers saying that the state’s aging workforce, combined with the inadequate skills of job candidates entering the workforce, will make the problem worse within the next five years.

The median age of manufacturing employees nationwide is 42. Connecticut’s workforce has a median age of 37.4 years, ranking it as the seventh-oldest workforce in the nation. More than three-quarters of Connecticut manufacturers say they expect up to 20 percent of their employees to retire within five years. And 94 percent expect to replace at least some of their workforce by 2010 due to employee retirements.

Source: News Release Connecticut Business & Industry Association (January 4, 2006)