For Immediate Release: 6/1/2017
Contact: Zachary Janowski
Mobile: (860) 384-5777
Hidden job costs make hiring in Connecticut less attractive
National ranking puts Connecticut in top 10 for costs on two measures
June 1 – Connecticut struggles with job and income growth rates slower than most other states and the ongoing loss of flagship employers.
Although government policies alone can’t turn a state’s economy around, they can make it easier for businesses in the state to expand and hire new people by lowering the regulatory cost per employee.
Job creators have spoken out about these issues in the past. A survey of businesses conducted by the Connecticut Business and Industry Association found that business owners felt they were unfairly burdened by “a swarm” of taxes, including unemployment insurance and workers’ compensation.
Now, there is a clearer picture of how Connecticut’s workers’ compensation and unemployment insurance programs cost businesses who want to hire more employees.
In Yankee Institute’s newest study, Connecticut’s Hidden Job Costs: Workers’ Compensation and Unemployment Insurance, author Mark Gius, a Quinnipiac University economics professor, reveals that Connecticut’s workers’ compensation costs are the second-highest in the nation.
Meanwhile, the cost of unemployment insurance per employee is the seventh-highest in the country.
This study is particularly relevant as Connecticut’s economy continues to stagnate and lawmakers consider a bill that would make some much-needed reforms to the unemployment insurance system.
Many changes are long overdue. House Bill 6461 would provide the first update in 50 years to the requirements necessary to receive unemployment insurance.
“It’s more than high taxes hurting Connecticut’s job market. The hidden costs of workers’ compensation and unemployment insurance contribute to our high cost of doing business,” said Rep. David Rutigliano, R-Trumbull, an active supporter and co-sponsor of the bill. “Reform is necessary to achieve the growth we so desperately need, and to get Connecticut working again. Once again Yankee Institute provides us with valuable information and free-market solutions.”
Joe Horvath, assistant policy director for Yankee Institute, says this study will equip lawmakers with sensible policy solutions to help Connecticut employers hire more people at no cost to taxpayers.
“It costs more than just the sum of salary and benefits to hire new workers. When the state and economy are hurting, the best thing we can do is make it as cheap and easy as possible to hire more people,” Horvath said. “Connecticut’s Hidden Job Costs shows how we can achieve that goal.”
Businesses in Connecticut already face plenty of difficulty and uncertainty. High taxation and a heavy regulatory burden make it more difficult for all employers – large and small, new and old – to grow and hire new people.
Connecticut’s Hidden Job Costs offers lawmakers, employers and job seekers a clear look at how Connecticut’s job costs stack up against other states and just how much businesses have to pay simply to hire someone in the Constitution State.
The Hartford-based Yankee Institute for Public Policy works to transform Connecticut into a place where everyone is free to succeed.