Preface:

Information for Workforce Investment Planning - 2002 provides the latest Labor Market Information (LMI) to assist Workforce Investment Board planners in the development of their local plans. Data are provided for Connecticut's 169 towns, where available, and aggregated on a statewide level and by workforce investment area.

Data on residents in need of workforce investment services, including public aid recipients, high school dropout rates, and persons with other barriers to employment, are based on information from several State agencies, as well as the Connecticut Department of Labor. We wish to thank all of the agencies that contributed to this report. We also wish to thank Office of Research and the Office for Performance Management staff who helped put this report together.

The tables, charts, and narrative in this report are within the public domain, and may be copied and/or quoted. We do, however, request that you attribute such material to this publication. We encourage your comments and suggestions, which may be directed to the Office of Research at the address below.

Changes, changes...

Connecticut's Workforce Investment Areas (WIAs) are currently being reorganized from eight to five. Since these changes will be in effect as of July 2003, planning data is being provided for the five proposed Workforce Investment Areas. The town composition of these new Areas mirrors the composition of the Connecticut Department of Economic & Community Development regions.

A number of changes are taking place in the collection of labor market information and how the data is reported. Major coding system changes include the shift in industry classification from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS). This is the last year that employment data is being provided using the SIC, a system last updated in 1987. Employment data is now being collected, and will be reported, under NAICS. For additional information on NAICS, access the U. S. Bureau of Labor Statistics Web site at: http://stats.bls.gov/bls/naics.htm

Beginning in 2001, due to a change in federal law that governs the way Indian tribes are treated under the Federal Unemployment Tax Act (FUTA), federally recognized Indian tribes and related establishments are now classified in local government. This reclassification is reflected in the services and government sectors' annual average employment estimates.

Additionally, several factors have come together simultaneously to impact the timely production and release of the latest employment projections, not just in Connecticut but nationally. Industry and occupational employment projections will therefore be released separately at a later date.

Please look for this report on our Web site at: http://www.ctdol.state.ct.us/lmi

Connecticut Department of Labor
Office of Research
Office for Performance Management
200 Folly Brook Boulevard
Wethersfield, CT 06109
Phone: (860) 263-6275
Fax: (860) 263-6263
E-mail: dol.lmi@po.state.ct.us

Connecticut Towns Listed by Workforce Investment Area:

Eastern Workforce Investment Area:

Northwest Workforce Investment Area:

North Central Workforce Investment Area:

South Central Workforce Investment Area:

Southwest Workforce Investment Area:

Highlights:

Geography:

The "new" Eastern Connecticut Workforce Investment Area (WIA) combines last year's Northeast and Southeast Workforce Investment Areas. It contains all of New London and Windham counties and the UCONN side (Mansfield) of Tolland County totaling 41 towns.

Population:

Census data indicates that the Eastern Workforce Investment Area grew in population by 12,277 people over the recent decade, reaching 412,026 people by the end of 2000. Twenty percent of the region's population is between 0-14 years of age and 17 percent is within the 35-44 years of age group.

Labor Force:

Data indicates that the labor force population has exhibited no significant gains or losses over the years for the Eastern Workforce Investment Area, thus it has been relatively stable.

Nonfarm Employment:

The Eastern Workforce Investment Area is the only Connecticut workforce investment area to avoid an employment downturn in this current recessionary environment.

Indian Casino development and expansions have more than stabilized the regional economy after the defense downturn, but now have brought new economic challenges to the Workforce Investment Area.

Other Economic Issues:

Area out-migration fallacies from the early 1990's have distorted housing and labor market dynamics which led to affordable housing problems, labor supply shortages, and behind schedule transportation planning.

Efforts at economic diversification have been successful in recent years with high value development from Pfizer leading the way, but fresh industries and strategies should be explored.

Transportation solutions may need to be carried out to further move along balanced growth and to help with better integration, convergence, and diversification of the Workforce Investment Area with other regions.

Analysis:

Overview:

The EASTERN Workforce Investment Area (WIA) now consists of the eastern third of the state and contains 41 towns. This new Workforce Investment Area is essentially the combination of last year's Northeast Workforce Investment Area and Southeast Workforce Investment Area. This eastern Connecticut area has borders with three states, including Rhode Island and Massachusetts to the east and north, respectively, as well as New York right off the Groton-Stonington coast to the south, on Long Island Sound with the exclusive Fishers Island (3 miles). Scheduled New London-based car and passenger ferry service to both Fishers Island and Long Island (12 miles) ties the region directly into the Empire State. Ferry service also extends to Block Island, RI in the summer. Commercial airline connections exist from Groton-New London Airport to a main airline hub in Philadelphia, PA. The upper part of the region is host to three small airports located in the towns of Windham, Danielson, and Woodstock, and is also known as Connecticut's "Quiet Corner." Amtrak and Shoreline East provide rail service from New London. I-95 marks the main east-west corridor along the coast and I-395 bisects the area in the north-south direction providing an important conduit to this enlarged eastern region. A small section of I-84 passes through the western uppermost section of the Workforce Investment Area. The Eastern Workforce Investment Area contains all of New London and Windham counties and the UCONN side (Mansfield) of Tolland County.

Population Change:

Census data indicates that the Eastern Workforce Investment Area grew in population by 12,277 people over the decade between 1990 and 2000. Representing a growth rate of 3.1percent, it lags slightly behind Connecticut's growth rate of 3.6 percent. Yet within this Workforce Investment Area, New London County had a 1.6-percent population growth while contiguous Windham County grew 6.4 percent and Tolland County grew 6.0 percent. New London County mostly supplies the jobs and the surrounding counties and states supply much of the incremental workforce to fill those jobs. New London County, however, never lost population in any Census in the 20th Century, and it probably won't start now. People will always congregate on the coast. Of the 41 towns in the region, 32 towns gained in population, or an overwhelming 78 percent positive growth diffusion. The highest growth occurred in the towns of Colchester and East Lyme showing an additional 3,571 and 2,778 residents, respectively. The smallest growth occurred in the town of Franklin, which added 25 people. The continuing propensity of population movement from urban settings to more suburban and rural townships that has been apparent in past censuses also held true for the 2000 count as the "big three" (Groton, New London, and Norwich) city-like municipalities in the southeastern part of the Workforce Investment Area all lost population. The town of Groton lost the most people, 5,237, followed by New London, 2,869, and Norwich which lost 1,274 residents. However, these three towns together are home to nearly 25 percent of the region's population. Incidentally, the larger municipalities in the northeastern part of the Workforce Investment Area, Windham and Killingly both had better than average population gains of 3.7 percent each.

Land area for the region totals 1,344 square miles. The population density table indicates an overall increase of 9.1 persons per square mile over the decade. The town of New London still ranked first in population density in the year 2000, supporting 4,667.5 persons per square mile, compared with the town of Union with the lowest density at 24.1. Population density in the Workforce Investment Area was 306.5 persons per square mile compared with 702.9 for the State, or less than half as dense in population.

Much has been written about the recent 2000 Census release of population trends that showed real net population gains in the area instead of the declining population predicted even just before the release. Some analysts had already figured this out due to the connection between job growth and population growth - "can't have one with out some of the other." The misplaced perception that lingered throughout much of the nineties of huge outmigration from the area was not only oppositely apparent in job growth for some time but also in school enrollment. Housing market dynamics were also affected by these out-migration fallacies, despite the billion-dollar Sunburst expansion in Uncasville and Pfizer's development in New London and their associated job development by 1998. One way to assess housing demand is to look at employment growth. Out-migration fears also tied into labor supply issues, especially in the recent staffing of the Sunburst expansion. No one believed the Mohegans could staff the 3,000 or so job increase-- they forgot about in-migration and immigration. Census Bureau estimates from July 1, 2000 to July 1, 2001 again have New London County declining in population (-346) one year after the latest Census of population. What these estimates may be missing is the 4,100 increase (2.6 percent) in the New London Labor Market Area's civilian labor force, measured to June 2002 from June 2001; that this was the only Connecticut area to add significant jobs during that time period; and that new housing permit issuance has been strong in the region through June 2002. In addition, defense and homeland activities have increased since 2001 bringing enhanced military operations to the region.

Population By Age:

The region's population distribution by age almost replicates that of the State. The only difference is in the age groups that rank fourth and fifth highest for the state compared with the region. That is, the 25-34 year age group ranks fifth highest in number of people at the state level but is the fourth highest for the Eastern region. And the 65+ age group ranks fourth highest at the state level but is fifth highest for the region.

The largest population group in the Eastern region lies in the 0-14 years of age bracket, 82,748 people equating to 20 percent of the population. The 35-44 years of age bracket ranks second, with 70,829 residents or 17 percent of the region's population. The working-age population, people between the ages of 15-64, totals 278,169 or nearly 68 percent of the region's total. There are 51,109 people aged 65 and over, or 12 percent of the region's population is of retirement age. The median age of the region is slightly above 35 years of age.

Population Race/Ethnicity:

The Population by Race/Ethnic Group Table shows that of the five predominant race/ethnic groups listed for the region, four experienced significant growth in membership. Most notably is the 75 percent growth in the Native American Community, an increase of 1,322 members. The Hispanic Community is not far behind with an increase of 8,699 members or growth rate of 64 percent over the decade. Worth mentioning is the 43 percent increase in the Asian/Pacific community and the 20 percent growth in the black community. While slightly more than 13 percent of the State's white population resided in the Eastern Workforce Investment Area in the year 2000, it realized a loss of 7,589 members. The white population experienced the largest declines in Groton, New London, Norwich, Windham, and Mansfield; while it increased most in Colchester, East Lyme, Coventry, and Woodstock. The Hispanic population grew most sizably in Windham, up by 85 percent, as well as in the towns of New London and Norwich.

Labor Force:

The labor force in the Eastern Workforce Investment Area rose by 800 people between 1997 and 2001, a slight growth rate of 0.4 percent for the region and significantly enough above the 0.3 percent decline in the State's labor force over the same period. The number employed over this period rose significantly for the region (3.3 percent), the highest rate among the five regions and more than double the State's growth rate of 1.6 percent. As the annual averages show in the Labor Force Data (By Place of Residence) Table, in 2000 the labor force in the Eastern Workforce Investment Area had reached a peak, 213,100 persons. With 208,200 employed, it translated into a low 2.3 percent unemployment rate. While the labor force shrank between 2000- 2001 by 1,800 people, the number employed shrank by 3,100 people; so many people wanting to work found themselves without a job. Between 2000 and 2001, the number of unemployed people who were seeking work increased by 1,400, from 4,900 to 6,300. Glancing over the labor force data for the towns in the region it appears that no town lost a significant number of people in its labor force over the year. And while a few towns recorded overthe- year losses of more than 100 in the number of employed residents, the spread of job losses was relatively even over the majority of the towns.

Nonfarm Employment (Industry):

Going from one extreme to another is tumultuous for a regional economy. Remember the early 1990's, when the eastern third of Connecticut was heavily impacted by massive national defense realignments. These decimated employment at major defense manufacturers like Electric Boat in Groton, United Nuclear, which closed in Uncasville, Pratt and Whitney (affecting commuters), and a major defense research facility that closed in New London by late 1996. (Yet virtually every defense installation closure in the nation from the 1990's became an eventual job generator.) And remember the strong service job creation and the replacement of lost manufacturing positions by opportunities that arose from federally recognized Indian tribes, despite dire predictions of depression-level unemployment rates by 1998. The Mashantucket Pequot Foxwood's Casino opened in February 1992, and the Mohegan Sun Casino opened in October 1996, abetting the region's structural shift to services. Eastern Workforce Investment Area unemployment rates dropped from 5.7 percent annualized in 1997 (highest of any Workforce Investment Area at the time) to 3.0 percent in 2001, the lowest level of unemployment among Connecticut's five Workforce Investment Areas by 2001.

Now that the 1990's transition from an economy that was overly dependent on defense has been fully integrated, the area has developed a more diversified, value-added economic base that has shown it can add jobs in future economic downturns. The result: The Eastern half of Connecticut has been the only portion of the state not to lose net jobs during the years of this post Y2K and 9-11 nationwide recessionary environment. Although the Eastern Workforce Investment Area covers nearly 28 percent of Connecticut's land area, it includes 12 percent of the State's population, provides just 10.6 percent of Connecticut's covered employment and accounts for an even lower 8.4 percent of the total wages paid in Connecticut. Consider the future-head east young Yank! The potential and room to grow are there. But if the living costs are already high, relative to incomes or to the kind of job opportunities that are currently being created, should unfettered growth be held unchecked? Perhaps better living standards and economic diversification should become the heightened policy focus so that area wages keep pace with continued employment growth in the Workforce Investment Area.

Employment by industry grew in this Workforce Investment Area from 166,913 to 176,248 between the years 1997-2001, and indicates that the region surpassed the State average in terms of growth, 5.6 compared with 4.9 percent. In terms of absolute growth over the period, the major contributors in the Eastern Workforce Investment Area are government (+5,360), with Indian casinos measured here, services (+3,636), and retail trade (+1,177); whereas, the services (+43,399), government (+19,020), and finance, insurance & real estate (+13,446) sectors are the major contributors statewide. The Eastern Workforce Investment Area's share of the loss in manufacturing jobs (-1,799) accounts for 8.5 percent of the total statewide loss (- 21,025) over the period.

The government sector remains the primary employer in this area, accounting for 29 percent of the region's total employment in 2001 and nearly 22 percent of the State's total government employment. Employment at the main campus of the University of Connecticut (UCONN) and Indian-related employment from casinos are measured here. The services sector ranks first in employment at the State level, and second at the regional level, with a growth rate in this Workforce Investment Area leading slightly at 9.4 compared with 9.2 percent in Connecticut. Mini-mall development and mall expansion in the region boosted the retail trade sector to the top third employer in the region in 2001, bumping the manufacturing sector down to fourth place. In 2001, the region's manufacturing sector accounted for 16 percent of Workforce Investment Area employment and 11percent of Connecticut's manufacturing employment.

In June 2001, the town of Groton was the highest provider of nonfarm employment in the region (27,290), followed by the town of Norwich (18,190), and ranking third highest was the town of New London (15,220). The jobs in Groton were distributed nearly equally between the goods and service producing industries, and the number of manufacturing jobs, at 12,580, well exceeded those in all other towns. The town of Norwich, however, was the leader in service jobs having posted 16,140 jobs. In the more rural sections of the region, the town of Windham provided a total of 10,580 jobs and Mansfield 9,650 jobs, with the number of government jobs surpassing all other towns (6,350) in the Workforce Investment Area.

In 2001 the annual wage in this region averaged $37,154, approximately 20 percent below the State's average of $46,947. The average manufacturing wage ($58,726) nearly equaled the statewide average ($60,173), and the transportation, communications & utilities (TCPU) annual average wage ($50,657) surpassed that of the State ($49,624). Among the Workforce Investment Area's manufacturing industries, the annual average wage for the paper & allied products industry surpassed the State's average by nearly 17 percent. Far exceeding all wages, security & commodity brokers, & dealers in the Eastern Workforce Investment Area earned $132,107 on average.

Available data indicates that employment in crop production has a significant presence in the region relative to the state and to the nation. Land conducive to farming, weather, and the entrance of new wine makers to the region are some contributing factors to its high ranking for the years shown. Almost expectedly, the decline in manufacturing over the years resulted in employment in primary metals industries dropping from first place in 1997 to fifth by 2001, relative to the state, although in 2000 it ranked fourth relative to the nation. New casino hotels and hotel expansions account for the rise in employment concentration in the industry from fourth to second place relative to the state between 1997 and 2001, as well as second to the nation in 2000. Manufacturing sectors in the Eastern Workforce Investment Area have been losing jobs for some time. Between 1997 and 2001, about 1,800 manufacturing jobs were lost. This occurred even as Pfizer has added significant employment since 1997. Recently, however, losses have been noticeable in printing sectors and primary- fabricated metals as well as plastic extrusion. The path of de-industrialization is perpetual at this point. By mid 2002 however, some lessening of production job losses has occurred especially now that employment levels have stabilized and are expected to head higher at Electric Boat (EB) in Groton. EB is winning contract work at the Naval Submarine Base in Groton and at other naval facilities and is able to maintain important core competencies. Defense-related producers are expected to do better, nevertheless, a Kaman aircraft production plant is closing in Moosup, idling around 400. Since 1997, the Workforce Investment Area has lost 6.0 percent of its manufacturing jobs while the State has lost 7.7 percent.

The major Pfizer pharmaceutical expansions in both Groton and New London in recent years have been a coveted, value-added boost to incomes and business balance in the Workforce Investment Area. This has boosted the Eastern Workforce Investment Area's economic profile with a highly educated and nicely paid workforce. The major drug mergers that Pfizer has initiated in recent years seem to benefit the Workforce Investment Area, as merger consolidation favors Pfizer's (the buyer) established facilities. Maintaining the presence of Central Research headquarters of one of the most valued drug companies in the world is paramount to the Area and the State. We're seeing some other development associated with Pfizer in the State, but right now most of it is outside the Workforce Investment Area, in the New Haven area, tied in with Yale medical research. Some biotech-contracting spin-off for the immediate region would be the next hope

Retail trade, which has added 1,200 new positions between 1997 and 2001, continues to flourish in the region. Last year's opening of Lisbon Landing in the middle of the Workforce Investment Area showed the need for more retailing options north of Norwich where the higher population growth is being encountered. Occum Village, off I-395 in the northern part of Norwich, has development proposals (Target). Ames closures will cut jobs in the short term this fall, but competitors are already here. Even though retail activity is dispersing throughout the Workforce Investment Area, Norwich still registers the highest net retail sales of $444,189,303 (2001) of any town in the area. The recent opening of the Mohegan Sunburst expansion in Uncasville brought a new influx of national specialty retailers to the area. The area is still waiting for plans on the rebuilding of a retail portion of downtown Mystic that burned in 2000. The Crystal Mall corridor in Waterford is set for a new development across Route 85 from the main mall section and is due to open in September 2003. A Borders Bookstore and a Pier 1, as well as some new restaurants will anchor the new development. The area could see housing-related retail entering the market soon. Pawn shops and fireworks stores also have become prevalent lately. Retail sales totaled closed to $2.8 billion in the Workforce Investment Area but represented only 6.5 percent of the state's total.

Wholesale trade sectors have added 300 jobs since 1997 and have benefited from some local buying policies of the Indian casinos. Also home furniture distribution has been boosted in the Norwich area by the relocation of a growing concern in this area. United Natural Foods in Killingly has also emerged as a strong creator of jobs since the mid-1990's, capitalizing on the natural food trend. They are the nation's largest distributors of natural foods. More state pier (New London) distribution of ship cargo would help the wholesale sector add more jobs and ties into a good rail connection that would help keep trucks off the road. Recently in 2002, wholesale employment has been flat due to manufacturing woes, since wholesalers supply many production sectors.

Transportation, communications and utilities (TCU) sectors in the Workforce Investment Area have not fared so well. Impacted by the closure of Millstone 1 and the eventual sale of the entire Millstone Power Station in Waterford to Dominion Resources, electric utility components have downsized employment significantly since 1997. Millstone is the largest nuclear power station in New England. The communications industry troubles have also kept telephone and cable employment declining. TCU division employment in the Workforce Investment Area has fallen 3.6 percent since 1997, or 262 positions, while TCU employment in the State as a whole has gained 4.8 percent. Power plants have been changing ownership in recent years and a major power plant has opened or is close to opening in Killingly. Transportation components in this division will surely be adding jobs as regional planning focus has highlighted the need for mass transit options. Taxis, bus, and more water-based travel alternatives could help this sector add jobs from the tourism outgrowth. Some private sector transportation initiatives on a small scale already have proven successful.

Finance, insurance, and real estate (FIRE) is another industry division that declined in the Workforce Investment Area since 1997, while significant growth occurred statewide. FIRE lost 425 positions in the Eastern Workforce Investment Area, or 9.6 percent. At the same time, the State had growth of over 10.4 percent in this sector. Most of the job loss may be due to a large bank merger in the area. People's Bank of Bridgeport took over the Norwich Savings Society and some job cutbacks resulted. Some local banks and credit unions are trying to gain deposit share by expanding branches and services. Citizens and Fleet, major New England banking players, are strong as well in the region. Real Estate is very active and should be a steady job generator in this region for a long time.

Construction and closely related mining (gravel mining in Connecticut) job levels should hold current levels after some employment adjustments resulting from the completion of some of the large construction projects in the area like Sunburst at Mohegan, Pfizer in New London, and power plants in Killingly. Residential construction demand will undoubtedly help maintain healthy construction job levels after these projects are fully completed. There are some large residential projects kicking around in the region. Focus now turns to Norwich downtown redevelopment, the Mashantucket Pequot golf resort plans, Crystal Mall area retail growth in Waterford, Fort Trumbull peninsula plans in New London, UCONN enhancements, other casino initiatives, and transportation planning in the nonresidential construction areas.

Government employing units will be facing different situations at the local, state, and government levels. Local government employment, the sub-segment where Indian employment is tallied, may start to see some decline in education and public maintenance areas as state budget woes have an effect on town budgets. This is after significant growth in recent years. Yet Indian job gains could mask this potential loss in statistics. State worker job tallies will probably stay flat and really have no potential for any strong growth in coming years except for student laborers working on state university campuses. In the short term, many people are going back to school or upgrading skills during this national recession. UCONN still has strong support for bonding expenditures. Federal employment will see some slight gains as homeland security measures are enacted by the Coast Guard and at the naval sub base and airport in Groton.

Per Capita Income, Retail Sales and Housing Permits:

The most recent per capita income data is the Census 2000 per capita money income, which differs from per capita personal income data provided by the Bureau of Economic Analysis. Residents in the towns of Lyme ($43,347), Old Lyme ($41,386), Stonington ($29,653), and Columbia ($29,446) were the only towns in the Workforce Investment Area to have surpassed the Connecticut's per capita money income of $28,766. The town of Windham recorded the lowest per capita money income ($16,978), while New London recorded the lowest median family ($38,942) and household ($33,809) incomes.

Retail sales for the region exceeded $2,759 million in 2001. The town of Norwich lead in sales with more than $444 million equating to over 16 percent of the Workforce Investment Area's total sales. The town of New London followed with over $389 million in sales, and the town of Waterford ranked third with nearly $352 million. Together the three towns accounted for almost 43 percent of the region's total sales in 2001.

Housing permits for the region totaled 1,368 in 2001, a decline of only 2 permits from their 2000 level. The town of Groton issued the most permits in 2000 with 121, and dropped to second place in 2001 with 76 permits. The town of Waterford had the lead in 2001 with 96 new permits. Every town in the region for both years had experienced residential growth in housing ranging from 1 to 121 permits.

Economic Diversification:

Ideas for further economic diversification in the Workforce Investment Area have become engaging. Aquaculture propagation has some Mohegan Tribal support and has established a better foothold, including a base consisting of shellfish hatchery infrastructure. Educational opportunities in these fields are also being offered at regional schools and more local fishermen have been increasing experimentation in this realm. A new proposal came from the marine cluster initiative (Connecticut Maritime Coalition) that would advance the aggregation of a more permanent fishing fleet in New London. This could help establish a strong local market with a Fisherman Co-op ideal that may concentrate on the deep-sea scallop fishery (this fishery is supposedly strengthening). Working with Stonington fishermen on plans would only strengthen the proposal especially if it includes the Mohegans who have a base of aquacultural operations in Stonington. This would complement the fledgling aquaculture industry that mainly works with shellfish. It would also embellish the tourism industry, as fresh seafood is an appealing offering that is very much in demand. The maritime "cluster" participants have been studying other synergistic proposals that take advantage of eastern Connecticut's coastal assets as well as promoting ideas that support tourism, urban development, transportation, and quality of life of issues.

Other approaches center on instilling a rejuvenated urban environment in areas that could use a redevelopment makeover, accomplished through preserving key reusable infrastructure without being confined by an area's past. This was done in New London with Pfizer and Fort Trumbull (now a state park). Bringing culture and artistry to small cities is also a plan to attract new people in to bring into being a "creative class" of professionals. This "creative class" is diverse in background and versatile in work needs and can adapt to available opportunities while embracing new ways of doing things. New London just ranked number ten in the country in a Creativity Index (for smallsized metro areas) that examined innovation-creativity, high-tech environment, and overall diversity. Human activity needs to be sustained by what is wanted everyday (a neighborhood), and that includes nightlife, museums, or a music scene, so cities don't stagnate. Norwich looks to proceed with some downtown and waterfront refurbishment projects that look as promising as ever now that the Three Rivers Community College consolidation (to Mohegan Campus part) has been decided upon. Intended office space has been tentatively pre-leased to the Mashantucket Pequots for administrative purposes, and some housing development and parking, aligned with more waterfront activity, might help pull it off. The Norwich Hospital site, cradling the Norwich- Preston line (Brewster Point), is still being marketed by the State but has laid fallow recently, except for some parking spillover use from the busy Mohegan Sun as well some logistics associated with Mohegan wholesale deliveries. Maybe it's time to start some sort of commercial incubator at Brewster Point.

Branching out to other tourism-related activities also diversifies a region that is looking to build a broader visitor-offering especially if one considers the current popularity of heritage tourism. The eastern part of the state has a lot to build on with a strong colonial, maritime or Indian history base already being utilized. The Mystic area is well known and has branded this recognition with "Mystic Places" to promote southeastern Connecticut. The area has an unbelievably strong concentration of museums for its population size. The establishment of a Coast Guard Museum in New London, near Fort Trumbull state park, would be a natural if plans work out. A boat tour of the lower Thames could document this river's military and maritime history including the Nautilus, Mt. Decatur, Fort Griswold (Groton), Avery Point, the Bark Eagle, US Naval Sub Base, and the story of the Amistad. Ocean Beach in New London has been renovated this year and is up in attendance. Historical reenactments and outdoor theater undertakings have been in the works. Also, the Quinebaug-Shetucket Rivers Valley National Heritage Corridor, mainly in the Northeast, is gaining attention with its colonial and industrial past and peaceful settings, plus the area has a strong antique trade. The Workforce Investment Area contains several well known state parks: Nipmuck, Natchaug, James Goodwin, Patchaug State Forest, Harkness, Hopeville, Mashamoquet, Rocky Neck, Bigelow Hollow, and the just opened Fort Trumbull which offer fishing, hiking, swimming, and boating. The area has ample hotel accommodations now with a tripling of the number of hotel rooms in the last decade. This will allow for marketing to longer and cheaper visitor stays.

Transportation and Housing:

Transportation and infrastructure solutions go hand in hand with intelligently developing the region. Traffic has been building in the region especially on I- 95 and heightened 24-hour activity is unprecedented around the Indian casinos. Councils of Government are again speaking to the water access issues and have initiated studies on housing availability problems. Higher-end priced housing in the suburban areas has been built steadily but more affordable or rental housing supply in both the urban or outer towns has not kept pace. Natural market tendencies in suburban towns have restricted affordable housing growth due to the high price of land that coincides with lack of infrastructure resulting in land use restrictions that prevent affordable housing from being built. Also towns are fearful of having to spend on a new wave school building that would escalate mill rates. The increased retirement community development in the area is the current market response that could further solidify these divergent trends versus need. The phenomena of growth from adult communities in places like Mystic and Waterford should not be discouraged while affordable housing undertakings will need some government and private support. A relocating or staying-put senior citizen community in the Eastern region may be beneficial in coming years as a flexible labor force with experience will be needed. The winters have been mild in Connecticut's southeast in recent years. Also an aging population means growth in services because of the varied domestic services needed.

Water supply awareness has been acutely brought to the forefront due to the underlying drought that is still lingering in current rainfall statistics. The Mohegan Tribe has pledged a proposal with some financial backing to get some surplus water in the Groton reservoir system over to the western side of the Thames River. This proposal helped get the water discussions back on the agenda and will tie into the placement and development of potential future plans to nurture any affordable housing outgrowth as well as further commercial development especially on lower Route 32 near the Mohegan Sun in Uncasville.

Transportation planning is an overwhelming focus in all of Connecticut. The Eastern Workforce Investment Area will have intense competition for available funds to address identified congestion problems. Yet initiatives have been brought forward. Adding an extra lane to both ways of I-95, completing Route 11 to Hartford, leapfrogging barge-container service down the Connecticut coast, and better integrating an existing regional bus service to ferries and possible rail loop service have been discussed. Large sources of funding to add lanes to I-95 and to complete Route 11 seem to be solutions that are out of the region's hands short term. However, focusing on small fixes that the region is doing inexpensively and at the local level has given some new insight to addressing the larger issues. Water taxies and local trolleys have had local support and some definite success during peak periods of operation in tourist centers like Mystic, and rail has worked for OpSail and the Yale-Harvard Regattas on the Thames.

Completing Route 11 and focusing on east-west connections in the middle of the state (like Route 6 and 44) would help the region diversify further and would help the southeast (where the jobs are) tap into other areas more efficiently for needed workers and educational development. Tapping into the Hartford region diversifies the region by connecting the eastern part of the state into a region that really has a different mix of industries. Stronger economic convergence could be the result, which would help increase incomes in eastern Connecticut. The East has a less developed financial sector, and Hartford is developing its intellectual capacity in a "Knowledge Corridor" initiative for educational opportunities and advancement. Higher educational attainment correlates with higher earnings in the workplace and could attract fresh industry looking for a better-educated workforce (human capital). The Eastern Workforce Investment Area has a surplus of service jobs that need to be filled and the corresponding defense work in each area is not overlapping with aerospace and submarines. Also the region relies on bigger airport connections for tourism and enhancing the Hartford or Providence option for commercial flights is desirable. A completed Route 11 would also give the region a better evacuation highway from the Millstone nuclear power plant.

Native American Competition?:

The next phase of differentiation and growth in the regional Indian gaming duopoly has been initated. Two golf courses with housing development on the Lake of Isles property near Foxwoods (Mashantucket, off Rt. 2) is the next physical stage in the Indian development game of federally recognized tribes in the Southeast. The Mohegan Sun in Uncasville officially opened their high rise hotel in June of 2002. The fall 2001 SunBurst opening at Mohegan brought the region's Indian gaming market into almost equal market share symmetry based on slot play statistics, which are public knowledge. Now the Mohegans have a hotel to accommodate players like Foxwoods. These two Indian gaming behemoths watch each other's moves closely and respond accordingly. Their best interest may lie with expanding the overall market instead of head to head competition. Employment levels have been adjusting between the two giant casinos as they adapt to the changing market potential after the large employment additions at the Sun in late September 2001. Indian tribal-related employment counts are in the 22,000 range right now. The Indians now have to contemplate a third federally recognized entrant, the newly combined and recognized as one tribe-- the Eastern Pequots and the Paucatuck Eastern Pequots. This newly recognized entity, with a state-recognized reservation only two miles from the Mashantucket Pequot's Foxwoods Casino in North Stonington, already does have established casino backers. Indian gaming development prospects are definitely not confined to the southeast. Northeastern parts of the Workforce Investment Area have been mentioned as potential gaming outposts (near the Massachusetts line) if more tribes are federally recognized. Area opposition to a third casino is apparent especially when word surfaced about trying to confine Indian gaming to the eastern part of the state. Regional tribal recognition, hospitality unions, and gaming saturation worries will need to be addressed in the region, and the region is in the national spotlight on this issue.

Residents in Need of Workforce Investment Services - Highlights:

• Among Connecticut's five Workforce Investment Areas, the Eastern region recorded the lowest percentage of cases in most assistance programs. These included State Administered General Assistance, (7.5 percent receiving cash, and 8.0 receiving Medical), Food Stamps (9.7 percent), Temporary Family Assistance (Regular - 8.8 percent, UP - 12.8 percent), Medicaid (11.2 percent) and Total State Supplement (11 percent).
• Under State Administered General Assistance (SAGA), the City of New London had 18.3 percent of the region's Cash and 17.1 percent of its Medical cases. In each of the other four Workforce Investment Areas, the largest city had about 50 percent of the region's caseload for both SAGA Cash and Medical.
• Connecticut's annual dropout rate for grades 9-12, for the school year 2000-2001, was 3.0 percent. Among the Eastern Workforce Investment Area towns, New London had the highest number of dropouts (181 pupils), followed by Norwich Free Academy, (91), and Killingly, (68). The 53.5 percent dropout rate reported for the Norwich school district is, in fact, the rate for its alternative high school. The city has an arrangement to send its general secondary-school population to Norwich Free Academy (NFA), where the drop out rate is 4.1 percent. Twelve of the region's 23 secondary schools reported dropout rates above 3.0 percent. Only five districts: East Lyme, District 18 (serving the towns of Lyme and Old Lyme), Woodstock Academy, Groton, and Waterford reported dropout rates below 2.0 percent.
• Among the five regions, the Eastern Workforce Investment Area had the lowest number of Active Mental Retardation Clients in Connecticut, reporting 2,262 or 15.5 percent of the State's 14,580 clients as of June 2002.
• The Eastern region had the fourth highest number of Alcohol & Drug Abusers served, 38,060 or 13.4 percent of 38,060 served statewide during State Fiscal Year 2000-2001. Conversely, the Workforce Investment Area had the lowest number of Probationers, 6,049 or 10.8 percent of the State's 55,889 probationers, as of May 2002.
• All 41 towns and cities in the Workforce Investment Area reported five or more dislocated workers as of March 2002. These persons accounted for 10.2 percent or 4,241 of the State total of 41,653. Over half of the workers had been unemployed for 15 weeks or more, and 35 percent were 45 years of age or older. The largest number of dislocated workers came from Norwich, (451) and Groton (322). Twentyseven out of the 41 towns reported fewer than 100 dislocated workers. In the Workforce Investment Area, of the 4,241 dislocated workers, 76. 5 percent were white, and 65.2 percent were male. Black and Hispanic dislocated workers accounted for the fewest number of cases in the Workforce Investment Area.
• Nearly 17 percent of the region's 9,970 CT Works registrants, the highest percentage among the five Workforce Investment Areas, are 24 years of age or younger. Those 55 and older accounted for 10.6 percent of the applicants in the Workforce Investment Area, compared with nearly 14 percent of the applicants statewide. Nearly one in ten registrants (971 or 9.7 percent) is a veteran. Almost two-thirds (6,299 or 63.2 percent) of the Workforce Investment Area applicants have at least completed high school.
• The highest number of teenage mothers in the Eastern Workforce Investment Area through December, 1999, was in the 19 year old category. Nineteen year olds accounted for 179 cases, 42 percent of the Workforce Investment Area's total, (427) and nearly 15 percent of the State's 19-year-old teenage mothers. The next highest share (27 percent), was among 18 year-olds. Groton, Norwich, and New London ranked highest in total teenage mothers. The region reported having only two mothers under age 15. Of the 41 cities and towns, six reported having no teenage mothers.

Glossary:

Base Period: A selected period of time, frequently one year, against which changes to other points in time are calculated (also see Index Number).

Benchmarking: The process of reestimating statistics as more complete data become available. Estimates are usually calculated using only a sample of the universe (total count). Therefore, benchmarking allows for correction of estimating errors. New benchmarking levels are introduced on an annual basis.

Covered Employment: Employment in any industry insured under the provisions of the Connecticut Unemployment Compensation Law.

Current Population Survey: A national household survey conducted each month by the Census Bureau for the United States Bureau of Labor Statistics. Information is gathered from a sample of about 60,000 households (1,200 in Connecticut) designed to represent the civilian noninstitutional population of persons 16 years of age and over.

Discouraged Workers: Persons not included in the unemployment count who say they did not look for work because they think none is available, or they believe they lack the skills necessary to compete in the labor market.

Dislocated Worker: As defined under the Workforce Investment Act of 1998, an individual who: (A) 1. has been terminated or laid off, or received notice of same; and 2. is eligible for or has exhausted entitlement to unemployment compensation, or has demonstrated attachment to the workforce but is not eligible for unemployment compensation; and 3. is unlikely to return to a previous industry or occupation. Or (B) 1. has been terminated or laid off, or has received notice of same, as a result of permanent closure or substantial layoff at a plant, facility or enterprise; or 2. is employed at a facility at which employer has made a general announcement that such facility will close within 180 days; or, 3. for purposes of receiving certain services, is employed at a facility at which the employer has made a general announcement that such facility will close. Or (C) was self-employed but is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters. Or (D) is a displaced homemaker.

Displaced Homemaker: An individual who has been providing unpaid services to family members in the home and who (A) has been dependent on the income of another family member but is no longer supported by that income; and (B) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.

Durable Goods: Items with a normal life expectancy of three years or more. Automobiles, furniture, household appliances, and mobile homes are examples. Because of their nature, expenditures for durable goods are generally postponable. Consequently, durable goods sales are the most volatile component of consumer expenditures.

Employed Persons: Those individuals who are 16 years of age and over who worked for pay any time during the week which includes the 12th day of the month, or who worked unpaid for 15 hours or more in a family-owned business, and individuals who were temporarily absent from their jobs due to illness, bad weather, vacation, labor dispute, or personal reasons. Excluded are persons whose only activity consists of work around the house and volunteer work for religious, charitable, and similar organizations.

Establishment: An economic unit such as a farm, mine, factory, or store, which produces goods or provides services. It is usually at a single physical location and engaged in one predominant type of economic activity.

Family: A group of two or more people who reside together and who are related by birth, marriage, or adoption.

Farm Employment: Persons who work as owners and operators of farms, as unpaid family workers on farms, or as hired workers who are engaged in farm activities.

Full-Time Employment: Employment of 35 or more hours per week.

Household: A household includes all the people who occupy a housing unit as their usual place of residence.

Housing Permits: Counted by the Bureau of the Census, new housing permits include permits issued for all new privately owned, attached and detached single-family houses.

Index Number: A measure of the relative changes occurring in a series of values compared with a base period. The base period usually equals 100, and any changes from it represent percentages. By use of an index number, large or unwieldy data, such as sales in thousands of dollars or costs in dollars and cents, are reduced to a form in which they can be readily understood.

Industry: A generic term for a distinct group of economic activities. Industries are described and classified by their primary activity or product.

Initial Claim: A notice filed by a worker, at the beginning of a period of unemployment, requesting a determination of insured status for jobless benefits.

Labor Force: All persons 16 years of age and over who are classified as employed, unemployed and seeking employment, or involved in a labormanagement dispute. The labor force does not include persons who never worked a full-time job lasting two weeks or longer and "discouraged workers" who have been unemployed for a substantial length of time and are no longer actively seeking employment. Members of the armed forces stationed either in the United States or abroad are counted by their place of residence. The civilian labor force excludes members of the armed forces and the institutionalized population.

Labor Force Participation Rate: The proportion of the total civilian noninstitutional population or of a demographic subgroup of that population classified as "in the labor force."

Labor Market Area (LMA): As defined by the United States Bureau of Labor Statistics, an economically integrated geographic area within which individuals can reside and find employment within a reasonable distance or can readily change employment without changing their place of residence.

Labor Market Information (LMI): The body of information that deals with the functioning of labor markets and the determination of the demand for and supply of labor. It includes, but is not limited to, such key factors as changes in the level and/or composition of economic activity, the population, employment and unemployment, income and earnings, wage rates, and fringe benefits.

Labor Surplus Area: A civil jurisdiction where the average unemployment rate is at least 20 percent above the average unemployment for all states, or its unemployment during the previous two calendar years was ten percent or more. The designation allows establishments in the area preference in bidding for certain federal contracts.

Location Quotients: Measure an industry's concentration or specialization in one geographical area relative to a larger area.

Manufacturing: Includes establishments engaged in the mechanical or chemical transformation of materials or substances into new products. These establishments are usually described as plants, factories, or mills and characteristically use power-driven machines and materials handling equipment. The new product of a manufacturing establishment may be "finished" in the sense that it is ready for utilization and consumption, or it may be "semi-finished" to become a raw material for an establishment engaged in further manufacturing.

Median: The middle value or midpoint between two middle values in a set of data arranged in order of increasing or decreasing magnitude. As such, one-half of the items in the set are less than the median and one-half are greater.

Median Income: The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median. For households and families, the median income is based on the distribution of the total number of households and families, including those with no income. Additional information on median income is available from the United States Census Bureau at: http://www.census.gov/prod/cen2000/doc/sf3.pdf.

Metropolitan Statistical Area (MSA): The general concept of a Metropolitan Statistical Area is one of a large population nucleus, together with adjacent communities which have a high degree of economic and social integration with that nucleus. Connecticut currently has seven Metropolitan Statistical Areas, as defined by the federal Office of Management and Budget.

Money Income: Census-based money income is derived from a sample of individuals 15 years of age and older, and consists only of income that is received by individuals in cash and its equivalents.

Nondurable Goods: Items that generally last for only a short period of time (three years or less). Food, beverages, apparel, and gasoline are common examples. Because of their nature, nondurable goods are generally purchased when needed.

Nonfarm Employment: The total number of persons on establishment payroll employed full- or part-time who received pay for any part of the pay period which includes the 12th day of the month. Temporary and intermittent employees are included, as are any workers who are on paid sick leave, on paid holiday, or who work during only part of the specified pay period. A striking worker who only works a small portion of the survey period, and is paid, is included. Persons on the payroll of more than one establishment are counted in each establishment. Data exclude proprietors, selfemployed, unpaid family or volunteer workers, farmworkers, and domestic workers. Persons on layoff the entire pay period, on leave without pay, on strike for the entire period or who have not yet reported for work are not counted as employed.

Occupation: A name or title of a job that identifies a set of activities or tasks that employees are paid to perform. Employees that perform essentially the same tasks are in the same occupation, whether or not they are in the same industry. Some occupations are concentrated in a few particular industries, other occupations are found in the majority of industries.

Part-Time Employment: As defined by the United States Bureau of Labor Statistics, employment in which a worker is regularly scheduled to work fewer than 35 hours a week.

Per Capita Personal Income: The annual total personal income of residents divided by resident population as of July 1.

Personal Income: Measures the net earnings, rental income, personal dividend income, personal interest income, and transfer payments by place of residence before the deduction of personal income taxes and other personal taxes. Reported in current dollars.

Private Household Workers: Persons who work for profit or fees in private households such as child care workers, cooks, housekeepers or other household staff.

Production Worker: Employees, up through the level of working supervisor, who are directly engaged in the manufacture of the product of an establishment. Among those excluded from this category are persons in executive and managerial positions and persons engaged in activities such as accounting, sales, advertising, routine clerical work, and professional and technical functions.

Retail Sales: Based on sales taxes received by the Connecticut Department of Revenue Services from firms in Standard Industrial Classification (SIC) industries 52 through 59, Retail Trade.

SAGA (State-Administered General Assistance): Provides cash, medical, and emergency assistance to persons who do not qualify for federal and state assistance programs, such as Supplemental Security Income (SSI), Temporary Assistance to Needy Families (TANF), and Medicaid.

Seasonal Adjustments: The adjustment of time-series data to eliminate the effect of intrayear variations that tend to occur each year in approximately the same manner. Examples of such variations include school terms, holidays, and yearly weather patterns.

Seasonal Industry: An industry in which activity is affected by regularly recurring weather changes, holidays, vacations, etc. The construction and recreational industries are typically characterized as "seasonal."

Self-Employed Workers: Persons who work for profit or fees in their own business, profession, trade, or farm. Self-employed persons whose businesses are incorporated are included among wage and salary workers, because technically, they are paid employees of a corporation.

Underemployed: Persons working full- or part-time in jobs that are below their earning capacity or level of competence. The terms "underemployed" and "underutilized" are used interchangeably. Underemployment has also been defined as "involuntary part-time" employment or employment of a person on a part-time basis when full-time work is desired.

Unemployed: Persons who, during the survey week, had no employment but were available for work and: (a) had engaged in any specific job-seeking activity within the past four weeks, such as registering at a public or private employment office, meeting with prospective employers, checking with friends or relatives, placing or answering advertisements, writing letters of application, or being on a union or professional register; (b) were waiting to be called back from a job from which they had been laid off; or (c) were waiting to report to a new wage or salary job within 30 days.

Unemployment Rate: Represents the number unemployed as a percent of the labor force. The seasonally adjusted unemployment rate eliminates the influence of regularly recurring seasonal fluctuations which can be ascribed to weather, crop-growing cycles, holidays, vacations, etc., and therefore, more clearly shows the underlying basic trend of unemployment.

Workforce Investment Act (WIA) of 1998: Represents significant changes to federal statutes governing programs of job training, adult education and literacy, and vocational rehabilitation in order to establish a coordinated, streamlined and more flexible workforce development system. It is a revitalized system that focuses on providing employers with skilled workers, and the economic and workforce information they need to conduct business effectively - and on providing workers with the information, advice, job search assistance, and training they need to get and keep good jobs.