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.
|District of Columbia||28.7||17.3||39.3||14.6|
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.