People’s Bank layoffs will ripple through CT

Layoffs at People’s United Bank associated with its acquisition by Buffalo, N.Y.-based M&T Bank will have a devastating effect on economy in Bridgeport and the rest of Fairfield County, a Connecticut economist said Monday.

And one of Connecticut’s U.S. senators said that could reach throughout the state.

Donald Klepper-Smith, chief economist and director of research for DataCore Partners, said the 747 layoffs announced at People’s United that M&T announced last week will result in the loss of an additional 1,153 jobs elsewhere in the Connecticut economy.

“The Bridgeport labor market area is going to be put on its haunches for at least a year or two by this,” Klepper-Smith said, “These people will not be absorbed into other jobs easily.”

For every dollar earned by People’s United, another $1.18 is spent elsewhere in the local economy, he said

“The financial services sector has some of the highest multipliers of any in the economy,” Klepper-Smith said. “They are pretty sizable.”