As the new year begins, our region continues to see slow but steady economic growth. The national unemployment rate has hit a five-year low, and throughout New England employers are beginning to add to their workforces.
Last year was a frustrating year in many ways as we saw our leaders in Washington struggle to reach compromise on critical fiscal issues. The year ended, however, with an encouraging show of bipartisanship as Congress reached a budget compromise that will give businesses a degree of certainty in the year ahead.
The New England Council believes that there are several areas where Congressional action could lead to tremendous economic growth.
Immigration Reform — One of the biggest challenges for many New England employers is a shortage of skilled workers in the “STEM” fields: science, technology, engineering, and math. Yet these are the fields where we expect to see the most growth in the years ahead. It is estimated that by 2018, there will be some 116,000 open STEM jobs in Connecticut. Efforts to reform our nation’s immigration system present our leaders in Congress with the opportunity to address this problem.
The Senate took significant strides last year in passing a comprehensive immigration reform package that includes measures to address the STEM skills gap. The bill increases the cap on H-1B visas, allowing more foreign-born STEM workers to remain in the U.S. The legislation also reallocates fees from those visas to support STEM education with the goal of developing a domestic pipeline of STEM workers for the future.
Unfortunately, immigration reform efforts stalled in the House in 2013. We urge the House to take action on this important issue in 2014.
Energy Efficiency — One of the most significant challenges for New England businesses is the high cost of energy. While we cannot change our region’s harsh winter weather and limited native fuel sources, one thing we can do is increase efficiency, which will bring down our costs in the long term.
Last year, New England’s own Sen. Jeanne Shaheen partnered with Ohio Sen. Rob Portman to introduce bipartisan, deficit-neutral legislation that would do just that. The Energy Savings and Industrial Competitiveness Act creates a national strategy to increase the use of energy efficiency technologies through a national model building energy code, and creates a financing program for commercial building efficiency projects.
The bill was introduced in the Senate in 2013, but not put to a vote. We’re hopeful that Congress will take action to increase energy efficiency and lower costs in 2014.
Investment in Research — New England prides itself on being a global center for innovation. Our region’s prestigious research universities and teaching hospitals are home to cutting edge research initiatives that produce many transformative innovations in energy, medicine, defense, and technology. These institutions rely heavily on funding from a variety of federal agencies to conduct this research, and so federal spending cuts in recent years — and in particular last year’s harsh sequestration cuts — have had a devastating effect.
The research conducted in our region’s research institutions not only led to new treatments, products, and technologies, but it also has a remarkable economic impact. For example, the National Institutes of Health (NIH) alone invested over $500 million in Connecticut in 2010, producing over 7,500 new jobs.
An investment in research is truly an investment in job creation and economic growth. The recent budget compromise was a step in the right direction, restoring a significant portion of the sequestration cuts. We are hopeful that in 2014 Congress will choose to invest more of those federal funds in research.
James T. Brett is CEO of The New England Council, a non-partisan alliance of businesses, academic and health institutions, and public and private organizations.