N.H. must adapt to stay ahead
New Hampshire is at a crossroads. The policies and philosophies that guided its economic success for three-plus decades may not be the ones to ensure its prosperity for the next three. A month before voters choose a new government, it’s important for candidates to spell out what they believe should be done to revive the New Hampshire “advantage.”
Last week, the New Hampshire Center for Public Policy Studies issued a sobering report on the state’s economic future. Many of the conditions that contributed to state’s ability to better weather recessions and take greater advantage of economic expansions no longer exist. When the country pulls out of its current economic malaise, New Hampshire is likely to find itself lagging behind national trends.
Some of the center’s more discouraging findings involve population trends that show the state is no longer as popular a domicile as it once was.
While the state has had a net outflow of population since the 2008 downturn, it’s level of “net in-migration was already declining well before the recession took hold, according to the report. That means people living elsewhere in the country do not consider New Hampshire a place that offers economic opportunity.
Furthermore, New Hampshire’s population is growing older at a faster rate than the rest of the country. In 1980, the state’s median age of 30.2 was on par with the nation’s. In 2010, the state’s median age jumped to 41.1 compared to 37.2 for the nation. The fastest growing segment of the state’s population is among those age 45 and older and the biggest decline is among those between the ages of 25 and 44. That means young people looking to build careers, start families and put down roots don’t consider New Hampshire an environment to make that happen.
Things have changed since the 1980s. Today, New Hampshire can’t attract new people to move here and can’t convince the ones already here to stay. It’s no wonder since the state boasts some of the highest energy prices, health care costs and property taxes in the country.
One of New Hampshire’s long-standing attractions has been its highly educated and trainable labor force. But the study cites more troublesome trends that suggest that advantage is slipping away as well.
The percentage of New Hampshire’s residents with a bachelor’s degree or higher grew at a faster rate than the national average from 1990-99 but at a slower rate from 2000-09. Indeed, the Granite State now trails most other regions of the county in educational attainment.
And then there is the issue of infrastructure. New Hampshire hasn’t done as good a job as other states in helping create a foundation on which business and labor can succeed. The study tracked capital investments in things like traditional industrial equipment and buildings. It also examined areas like broadband access and computer software. It found New Hampshire capital investments of all types have been in decline since the 1980s.
New Hampshire still benefits from an overall high quality of life, but that’s no longer enough to offset other detriments.
The unavoidable conclusion is the state’s economic struggles aren’t simply a function of the current recession. The world is changing and New Hampshire isn’t adapting to a new economic order.
— Nashua Telegraph