Monday, December 14, 2009


Back Home .Norwich/New London leading state in jobs lost
Casino slowdown at root of decline.

Norwich Bulletin
Posted Dec 11, 2009 @ 12:00 AM


Norwich, Conn. — .Declining business at the region’s two casinos has hit Eastern Connecticut’s economy broadside, according to a University of Connecticut report.

The decline of gambling and other revenues at Foxwoods Resort Casino’s two properties, which includes MGM Grand, and at Mohegan Sun has dried up jobs and construction activity.

Norwich/New London was tops among the state’s four major areas in percentage of job losses, the winter 2010 edition of The Connecticut Economy reported.

Non-farm jobs in Norwich/New London fell 4.2 percent in the third quarter from the year-earlier period. Willimantic/Danielson, which is not one of the state’s four largest areas, had a 4.7 percent decline.

Workers leaving Eastern Connecticut gave a boost to the statistics, wrote Steven P. Lanza, executive editor of the 24-page quarterly report.

“A shrinking labor force has helped keep the area’s unemployment rate below the statewide average,” he wrote.

Norwich/New London’s third-quarter unemployment rate was 7.7 percent, up from 5.9 percent a year earlier. The statewide figure was 8.1 percent, rising from 6 percent in the prior year.

Willimantic/Danielson’s jobless rate climbed to 8.9 percent from 6.8 percent.

The pace of layoffs is expected to slow, improving comparisons for the region versus the state.

“Maintaining that status (below the statewide unemployment rate) in coming quarters may be made easier, if as anticipated, job losses tail off in 2010,” Lanza wrote.

Casino slowdowns were responsible for one-third of Norwich-area job losses, the report states.

Jobs in “government,” which include casinos, fell 5.1 percent. Construction jobs fell 17.8 percent.
Norwich-area housing statistics are also closely tied to casino fortunes, the report found.

Third-quarter housing permits fell 5.5 percent from a year ago, while housing prices fell 11.7 percent. Willimantic/Danielson saw permits fall 17.4 percent with prices unchanged.

“Housing conditions should improve in 2010, although the area will still lag other regions unless casino activity rebounds,” Lanza wrote.

Health and education was the only job sector to grow in Norwich/New London, rising 1 percent, the report said.

EDITORIAL FOOTNOTE: A Mohegan Tribal Member called me up on Sunday and said did you read the article about Lynn Malerba, in the New London Day. The Tribal Member said Malerba is running scarred. I read the article and posted it here for you to read.

The Tribal Council and its supporters, continue to blame the ECONOMY. The Facts are business has been going down for over the last two years. Could it be instead of the ECONOMY being the problem, it was poor business decisions by the MTGA (the Mohegan Tribal Council)?

Didn't Chairwoman Malerba and members of the Tribal Council vote for the permanent facility at Pocono Downs? Didn't the Tribal Council under Chairwoman Malerba, recently borrow funds at between a eleven and twelve percent (11% to 12%). Wasn't Malerba part of the Past Mohegan Tribal Council who's decisions had our credit rating go to BB to the current CCC- (junk Bonds)? Did Malerba vote to build the Earth Hotel (Project Horizon ? Did Malerba vote to build the Government Community Center, without the financing in place? Did she want to build something that some tribal members really don't want and think we (the Mohegan Tribe) can afford?

The CRANES OF SHAME are coming down. Are they a testament of the Tribal Councils bad business decisions? Where is the MTGA (Mohegan Tribal Gaming Authority) going to get the money for future projects, like Palmer, Massachusetts? What about finishing the Project Horizon hotel? Does the MTGA have any other choice but to try and get a partner to finish it? Will the Mohegans get a partner to build a hotel at Pocono Downs? Isn't having business partners, part of the problem that got the Mohegan Tribe in this financial mess to begin with?

Is this spin by the Malerba and her tribal Council? What do you think?

1 comment:

peter said...

Connecticut unemployment is on the rise over the last month, but conditions vary throughout the state. Some areas are worse than others as visualized in this heat map: