With a recent study showing that Connecticut has become an attractive option for workers – both remote and on-site – and the president of the Connecticut Business & Industry Association says the state should keep building upon the momentum.
According to the study – prepared by Yardi Kube, a workspace management platform – workers are on the move, with large changes in the data occurring from 2019 to 2022.
In 2019, 14.1% of the workers who moved between states did so for on-site jobs, whereas 12.8% of the workers who switched states had done so for remote work. But the trend flipped in 2020.
By 2021, 15.7% of workers who switched states had done so for remote jobs, while the percentage of workers who switched states for on-site jobs dropped to 13.2%. In 2022 the gap narrowed a bit but still favored remote, with 14.7% moving for remote work and 12.9% moving for on-site jobs.
Connecticut, however, was also the recipient of large influxes of workers by volume, not just percentage, for both remote and on-site jobs.
In 2022, remote workers made up 20,506 of the 146,000 new residents who moved to Connecticut, putting the state sixth in the nation in terms of in-migration of workers for remote jobs behind Florida, Texas, North Carolina, Georgia, and Arizona. It was a net gain of 9,853 workers in the remote category.
But perhaps the biggest news from the survey fell under the on-site work category. According to the data, Connecticut had the third-highest influx of on-site workers in the country, behind only Florida and Texas. Some 66,400 people moved to Connecticut for on-site jobs for a net gain of 32,619.
CBIA President and CEO Chris DiPentima said the statistics show that workers are choosing Connecticut for a variety of reasons.
"It plays to Connecticut’s strengths. We have a great foundation," DiPentima said. "Whether it’s the education system that people want to take advantage of and now can because they don’t have to be tied to a company’s physical location."
He said the state has other attractions, such as its beaches, as well as a lower cost of living than New York City or Boston.
But, DiPentima added, there is still a high cost to living in Connecticut, and more work to do to pull workers from beyond the northeast region.
The Yardi Kube analysis showed that the migration of remote workers "has caused changes in local economies and communities, with Connecticut now serving as a vibrant hub for business and innovation, attracting Millennials."
DiPentima said younger folks may now be thinking of starting a family and will be looking to Connecticut to settle down.
"Now we need to lean into lowering the cost of living, housing, and more affordable childcare to really capitalize on this," DePentima said.
There was progress with a 2023 change that resulted in a reduction in Connecticut’s income tax rates, which took effect in January 2024.
CBIA has since been advocating for the state to look at:
- Improving access to affordable, high-quality health insurance for small business employees
- Implement tax incentives for first-time homebuyers
- Make necessary investments in the state’s childcare industry
CBIA supported a proposal for a homebuyers savings account for first-time homebuyers – which can’t proceed this year due to the state’s budget – and a proposal that would provide tax credits for developers that convert commercial buildings into residential properties.
DePentima said goals should include keeping college graduates in the state, and also continue to address those who face dual taxation, by living in one state but working in another.
Gov. Ned Lamont has introduced what is known as the "Challenge Incentive" as part of his office’s annual budget proposal. If successful, officials have estimated that this approach could potentially enable the state to recover up to $200 million in taxes presently paid to New York. Connecticut’s strategy involves catalyzing a series of individual lawsuits in federal court challenging New York’s tax policies.
Connecticut proposes to offer a significant discount on any state taxes owed to the state if residents win their cases.
