FOR IMMEDIATE RELEASE November 19, 2008

Contact:  860-524-7313

Governor Rell joins Governors of NY and NJ to Seek Aid

 for Displaced Financial Services Workers

$48.2 Million Grant Would Help Retrain Workers Who Have Lost

Jobs in National Economic Downturn

            Governor M. Jodi Rell, along with Governor David Paterson of New York and Governor John Corzine of New Jersey today urged U.S. Labor Secretary Elaine Chao to approve a $48.2 million tri-state National Emergency Grant to address the needs of thousands of workers who are losing their jobs due to the financial crisis on Wall Street.

            In a letter to Secretary Chao, the governors wrote that the tri-state area is projected to lose 160,000 jobs by year’s end and 82,000 financial service jobs by the end of 2009.

            “Given the bearish economic forecasts for the next two to three years, we anticipate the unemployment rate will continue to rise significantly,” the Governors wrote. “It is essential that our states have sufficient resources in place to help support and transition these workers to new employment opportunities.”

Governor Rell said that Connecticut expects to lose 11,400 of its financial jobs in three of its most heavily affected counties – Fairfield, New Haven and Hartford – based on estimates by labor market analysts.

“Connecticut workers – like those in our neighboring states – are feeling the pain of the turmoil on Wall Street,” Governor Rell said.  “Many of the people losing jobs are not highly-paid securities traders, but administrative and computer support personnel. It is unlikely that they will return to financial sector jobs and they will need retraining and other support services to help them transition back into the workforce.”

In the past five months, the unemployment rate for the tri-state region has increased from 4.5 percent to 5.8 percent. In New York State, 20,000 jobless claims from the financial sector have been filed over the past six months. New Jersey has lost nearly 10,000 financial services jobs over the last two years.

Governor Rell said the federal grant will allow the three states to develop a coordinated response to help displaced workers. The grant would provide individuals with training accounts of $12,500 for 24 months for job search and relocation assistance.

The tri-state response also includes a labor market analysis and forecasting for the region and identification of high-paying, skilled job opportunities in industrial sectors and other areas, such as training for math and science teachers.

“The federal government acted swiftly to implement strategies to stabilize financial institutions,” the governors wrote. “Now it is time to act together to support the workers dislocated from those institutions.”