Pay at Connecticut’s youngest businesses middling compared with nation

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While Connecticut residents are among the top earners in the country, pay at the state’s newest employers is far less competitive.

Connecticut’s employer businesses tend to be older than those in other states, and older businesses tend to pay better, according to new U.S. Census Bureau data.

More old than new

About 25 percent of the state’s businesses with paid employees are 5 years old or newer, putting Connecticut toward the bottom of the list when comparing which states have the most new businesses. Nevada leads the states with 38 percent of its businesses under 5 years old.

That’s according to the inaugural Annual Survey of Entrepreneurs, released last week, for 2014. Trend CT reported last week, based on the same data, that Connecticut’s younger employer businesses were more often owned by women and minorities than the state’s older businesses.

Connecticut also lags in new businesses after breaking the data down into bigger, 10-year buckets.

Differences in pay

Connecticut employer businesses paid employees $53,243 per year — far more than in most other states. Connecticut was behind only three other states: Massachusetts ($57,674), New York ($57,637) and New Jersey ($53,331) in payroll dollars per employee. These are states which, like Connecticut, have relatively high costs of living.

While Connecticut residents are among the top earners in the country as a whole, Connecticut’s youngest businesses didn’t pay as competitively as its older ones. Pay for employees at Connecticut businesses under two years old was in the middle of the pack, 25th in the nation; and pay for employees at 2-3-year-old companies was $28,038, 20th in the nation. Employees at businesses 16-or-more years old earned more than double that: $63,290.

Percentage of employer businesses by years in operation
Only businesses with paid employees are included.
state 0-5 6-10 11-15 16+
Alabama 27.3 19.7 45.3 7.7
Alaska 29.0 21.6 41.9 7.5
Arizona 34.1 22.5 37.4 6.0
Arkansas 27.7 20.7 44.1 7.5
California 33.8 22.3 40.5 3.3
Colorado 32.2 22.8 39.8 5.2
Connecticut 25.4 17.9 49.7 7.0
Delaware 27.8 18.6 41.5 12.1
District of Columbia 28.7 17.3 39.3 14.6
Florida 37.1 22.7 36.5 3.7
Georgia 32.3 22.0 40.0 5.8
Hawaii 26.2 18.8 46.6 8.4
Idaho 29.0 24.1 40.5 6.4
Illinois 28.4 20.1 46.0 5.4
Indiana 26.6 18.8 47.4 7.2
Iowa 24.2 19.3 49.0 7.5
Kansas 26.1 19.3 47.3 7.3
Kentucky 28.0 18.3 46.2 7.5
Louisiana 28.0 19.5 45.4 7.1
Maine 25.6 20.0 48.1 6.4
Maryland 27.8 19.3 46.5 6.4
Massachusetts 26.9 18.7 49.1 5.3
Michigan 26.4 18.9 48.7 6.0
Minnesota 26.3 19.1 48.7 5.9
Mississippi 26.9 19.0 45.9 8.2
Missouri 31.9 18.6 43.3 6.3
Montana 27.7 22.5 44.1 5.7
Nebraska 25.0 20.2 47.1 7.6
Nevada 38.6 23.2 30.7 7.5
New Hampshire 24.3 19.8 48.6 7.3
New Jersey 30.5 19.1 45.8 4.5
New Mexico 28.0 19.7 44.5 7.9
New York 34.7 19.5 42.0 3.7
North Carolina 30.6 21.2 42.1 6.1
North Dakota 31.0 17.7 43.3 8.0
Ohio 25.0 18.2 50.4 6.5
Oklahoma 29.6 20.8 43.0 6.6
Oregon 30.3 21.9 42.1 5.7
Pennsylvania 26.3 19.2 49.1 5.4
Rhode Island 23.9 17.9 50.2 7.9
South Carolina 29.5 20.8 42.3 7.4
South Dakota 25.8 19.6 46.5 8.1
Tennessee 29.8 19.0 43.5 7.7
Texas 35.3 21.0 39.4 4.3
Utah 34.9 23.6 35.1 6.3
Vermont 22.4 18.3 50.3 8.9
Virginia 29.2 21.8 43.1 5.9
Washington 32.0 21.9 40.8 5.3
West Virginia 22.8 17.4 50.0 9.7
Wisconsin 24.3 19.1 50.3 6.3
Wyoming 28.7 21.4 42.6 7.3
U.S. Census Bureau

Check our work — The data and analysis for this story are available in Trend CT’s GitHub repository. The methodology might be too technical for many of our readers but we encourage you to check our work and use it as a basis for your own research.

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