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September 14, 2023

CBIA report: Business costs are rising; 81% of employers say talent shortage is ongoing

HBJ Photo | Skyler Frazer CBIA held its annual The Connecticut Economy conference in Hartford on Thursday, Sept. 14.
By Skyler Frazer

Connecticut businesses are still struggling to find and retain talent, according to a new report from the Connecticut Business & Industry Association (CBIA), and most business leaders believe the state’s business climate is either declining or remaining static as the cost of business increases.

The CBIA and accounting firm Marcum LLP released the 2023 Survey of Connecticut Businesses today, which found that 81% of employers experienced difficulty finding and retaining workers. This was about the same last year, according to data from the CBIA.

Connecticut currently has about 91,000 open jobs, according to federal labor data. 

Some top executives, 46%, said lack of skilled labor is their greatest obstacle to growth, a 7% increase from 2022. 

Regarding Connecticut’s economic environment, 41% of business executives surveyed said they think the state’s business climate is static, while 33% said they believe it’s actually declining. Ten percent of business executives surveyed said they think the state’s business climate is improving.

And according to 91% of business leaders surveyed, the cost of doing business in Connecticut is increasing, led by rising labor costs. Sixteen percent of businesses said state taxes were the main reason the cost of doing business is going up.

Inflation remains a challenge for 83% of businesses, according to the data.

Other key findings include:

  • 76% of companies reported profits in 2022, up from 68% the previous year and the highest since 2019.
  • Two-thirds (66%) expect a profitable 2023, with just 7% projecting losses.
  • One-quarter of business leaders believe Connecticut’s economy will expand over the next 12 months, with 29% forecasting national growth
  • 60% expect their employment levels to remain stable over the next six months, with 30% projecting increases.
  • 92% of employers offer employees health insurance benefits and 86% report coverage costs increased in the latest renewal period.

CBIA mailed and emailed the 2023 survey to more than 3,100 top executives throughout the state between June 12 and July 17, the business organization said. Seventy-nine percent of surveyed firms employ less than 50 people: 11% employ 50 to 99 workers; 6% between 100 and 249; 2% employ 250 to 499; and 2% employ more than 500 employees.

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