Issue link: https://nebusinessmedia.uberflip.com/i/1455435
16 HARTFORDBUSINESS.COM | FEBRUARY 28, 2021 Addressing workforce shortage seen as key issue this legislative session By Robert Storace rstorace@hartfordbusiness.com A s Connecticut's workforce shortage continues to be a drag on the economy, state legislators this session will consider a spate of proposals that aim to get more people into in- demand jobs, particularly in sectors like manufacturing and health care. The data is alarming: According to the Department of Labor, Connecticut has recovered just 75% of the 292,400 jobs lost to pandemic lockdowns and restrictions in March and April 2020, well behind the U.S. recovery rate. Overall, there are 74,300 fewer people working in the state today than in February 2020. And employers reported 110,000 open positions at the end of December, according to U.S. Bureau of Labor Statistics data. Toward the end of last summer, 80% of Connecticut businesses said they were having difficulty finding or retaining workers, according to the Connecticut Business & Industry Association's 2021 Survey of Connecticut Businesses. The CBIA has made addressing the workforce shortage a top priority this session, and while legislative leaders said there are political roadblocks to a number of workforce initiatives, there is also at least some bipartisan support for certain policy proposals. Those include efforts to: Recognize out-of-state licenses for some industries; exempt workforce training programs from the state sales and use tax; expand the state's manufacturing apprenticeship tax credit to include small and midsize manufacturers; ease regulatory burdens; and support a loan forgiveness program for medical students and residents. Meantime, Gov. Ned Lamont recently proposed spending $87.4 million next fiscal year on workforce development efforts, including expanding career pathway programs for unemployed residents and providing more scholarships and training for in-demand healthcare jobs. Still, lawmakers and business advocates admit any new legislation won't be a cure-all, particularly in helping lower- paying industries like restaurants and retailers fill open positions. "I don't think legislation can really help in that area," said Connecticut House Minority Leader Vincent Candelora, a Republican from North Branford. What's causing the shortage? Kenneth Entenmann is an economist with New York- based NBT Bank who covers the Northeast region. Across the country, he said there are about 8 million fewer people in the workforce today vs. pre-pandemic. Many economists and others blamed enhanced government benefits for keeping some people, particularly those in lower-paying and higher-risk jobs, out of the workforce over the last year. However, those extra jobless benefits have largely expired, even as the labor shortage persists. Others left the job market due to lack of child care or because they feared getting or spreading the virus to more vulnerable family members. In some cases shortages are industry specific. For example, the healthcare industry has seen a workforce shortage made worse by the pain, suffering and demands created by the pandemic. Entenmann said three factors continue to compound the shortage: early retirements, diminished legal immigration of workers and a significant increase in self- employment. "While we are seeing improvements in the labor shortage, it is happening at a much slower pace than we would have predicted," he said. Entenmann said Connecticut should look at its tax and regulatory structure if it wants to jump-start economic activity. Gov. Ned Lamont delivering his 2022 state of the state address in the state Capitol, where he unveiled plans to invest $87.4 million in workforce development efforts. Kenneth Entenmann Vincent Candelora PHOTO | YEHYUN KIM/CTMIRROR.ORG