For three decades, low-tax New Hampshire has been used to outperforming neighboring Vermont and Massachusetts in economic growth. Now, the tide seems to have shifted.
Even though it has the second-best employment rate among the battleground states (5.7 percent), New Hampshire has seen its job growth all but stall in the past year. It ranks second-worst in job growth among the battleground states and No. 42 overall. It's unemployment rate is the highest it has been in nearly two years. In February, Vermont began to post a lower unemployment rate and Massachusetts is closing the gap.
New Hampshire's gains in wholesale and retail trade have been offset by losses in education services and arts, entertainment, and recreation. Since the Great Recession, the state has regained less than 10 percent of the jobs it lost. Vermont is 59 percent of the way back to its peak; Massachusetts, 70 percent.
Productivity growth has been slowing for a decade, according to a September report by the New Hampshire Center of Public Policy Studies. The labor force has shrunk from its 2008 levels. Capital investment has slowed.
"We have to change the way we think about ourselves as a state," Steve Norton, the director of the center, told the Union Leader in Machester, N.H. "We can no longer assume that New Hampshire will continue along the economic trajectory it has for many years."
Advantage: Obama, but within the margin of error.
