Connecticut Economic Report

CONNECTICUT ECONOMIC REPORT:  CONSUMER, BUSINESS & FINANCIAL DATA

Connecticut is a state with a strong and diversified economy, with a number of major industries and businesses. The state has a well-educated workforce and is home to a number of Fortune 500 companies.

Connecticut’s GDP is $278.7 billion, and the median household income is $88,429. The unemployment rate is 5.2%, and the major industries include manufacturing, healthcare, financial services, education, and professional and business services.

There are over 273,800 businesses in Connecticut, employing over 1.4 million people. Small businesses play a vital role in the state’s economy, accounting for over half of the private sector employment.

Connecticut is committed to supporting small businesses and helping them thrive. The state offers a number of resources and programs to support small businesses, including the Connecticut Small Business Development Center, the Small Business Collective, and Connecticut Innovations. The following is a breakdown of consumer and business data for the state.

Connecticut Economic Report: Demographics

• Population: 3,626,205 (July 1, 2022 estimate)
• Age distribution:
  • Under 18: 20.2%
  • 18-64: 61.5%
  • 65 and over: 18.3%
• Race and ethnicity:
  • White: 78.4%
  • Black or African American: 12.9%
  • Hispanic or Latino: 17.9%
  • Asian: 6.6%
  • Other: 4.2%
• Educational attainment:
  • High school diploma or equivalent: 88.7%
  • Bachelor’s degree or higher: 41.9%

Connecticut Economic Report: Financials

• Gross domestic product (GDP): $278.7 billion (2022 estimate)
• Median household income: $88,429 (2022 estimate)
• Unemployment rate: 5.2% (August 2023)
• Major industries:
  • Manufacturing
  • Healthcare
  • Financial services
  • Education
  • Professional and business services

Connecticut Economic Report: Business 

• Number of businesses: 273,800 (2021)
• Number of employees: 1.4 million (2021)
• Major business sectors:
  • Manufacturing
  • Healthcare
  • Financial services
  • Education
  • Professional and business services

Connecticut Economic Report: Small Business 

• Number of small businesses: 260,600 (2021)
• Number of employees at small businesses: 814,700 (2021)
• Percent of private sector employment at small businesses: 57.8% (2021)
• Small business payroll: $39.4 billion (2021)
• Small businesses play a vital role in Connecticut’s economy, accounting for over half of the state’s private sector employment. Small businesses are also a major source of innovation and job growth.

Connecticut’s economy is strong and diversified, with a number of major industries and businesses. The state has a well-educated workforce and is home to a number of Fortune 500 companies.

The following is a breakdown of the number of businesses in Connecticut, by industry, according to the Connecticut Department of Economic and Community Development:

The most common industries in Connecticut are professional, scientific, and technical services; real estate and rental and leasing; construction; and health care and social assistance. These industries together account for over half of all businesses in the state.

Connecticut Economic Report: Planned Purchases

• Housing: According to a recent survey by the Connecticut Association of Realtors, 18% of Connecticut residents plan to buy a home in the next year. This is up from 15% last year.
• Transportation: According to a recent survey by the Connecticut Department of Transportation, 12% of Connecticut residents plan to buy a new car in the next year. This is down from 14% last year.
• Education: According to a recent survey by the Connecticut Board of Education, 10% of Connecticut residents plan to pay for college tuition for their children in the next year. This is up from 9% last year.
• Healthcare: According to a recent survey by the Connecticut Health Insurance Exchange, 8% of Connecticut residents plan to buy a new health insurance plan in the next year. This is down from 10% last year.
• Home improvement: According to a recent survey by the National Association of Home Builders, 7% of Connecticut residents plan to renovate their homes in the next year. This is up from 6% last year.

Connecticut Economic Report: Summary

Overall, Connecticut residents plan to spend more money on housing, education, and home improvement in the next year than they did last year. However, they plan to spend less money on transportation and healthcare.

Ultimately, Connecticut represents strong opportunities for both B2B and B2C businesses who are focused on establishing themselves, or gaining marketshare. From a marketing perspective, the opportunity lies in understanding the behaviors and interests of target audiences, while utilizing data and technology that ensures the right messaging is sent, at the right time.

Sources:

U.S. Census Bureau

Connecticut Department of Economic and Community Development

Connecticut Labor Market Information