NH Employers Need Help

There’s certain to be significant change in Concord when voters head to the polls in November as a third of the Senate alone is not seeking re-election. For those who do make it to the legislature, the business community has a lengthy list of concerns.

The Business & Industry Association (BIA), NH’s statewide chamber of commerce, held 10 roundtable policy talks this summer and heard from employers that worker shortages, lack of housing, inadequate child- and elder-care options, and rising energy costs were among the most pressing issues they face today.

The BIA normally holds the roundtable talks every two years ahead of the state’s fall elections but couldn’t in 2020 due to the pandemic. Economic challenges have changed significantly since 2018. The roundtable process made clear many challenges threaten employers’ success and NH’s economic growth.

More than 230 people participated, and worker and housing shortages were by far the top concerns at all 10 roundtables. Employer after employer discussed how hard it is to attract applicants, and many talked about successful candidates turning down jobs because they couldn’t find suitable housing.

The lack of available and affordable child care was another factor contributing to the worker shortage. The pandemic only worsened a long-term problem for young families. Many roundtable participants also cited the lack of elder care as a burden on the sandwich generation of workers who need care for young children and elderly parents.

The high cost of heating fuels, electricity and automobile gas were among top energy concerns as costs hit historic highs this summer. Spiking traditional fuel costs, such as natural gas, added emphasis to participants’ calls for a quicker transition to renewable, reliable and cheaper energy sources.

The cost of health care benefits was a top concern in the health care category, as is the lack of available mental health support programs for workers.

All these challenges increase costs for businesses and nonprofits, straining their ability to remain profitable and in operation. A slowing of economic growth in NH could reduce what the state collects in business taxes.

Taking Action
At these roundtables, the BIA gathered recommended action steps to help ease the challenges.

Increasing workforce housing was the top overall priority of participants. Action steps included promoting the economic benefits of more diverse housing, working with towns and cities to adjust zoning to encourage higher-density housing and
allowing for more mixed-use zoning so employers can develop housing at their commercial sites. Others called for expedited approval processes, incentives for employers to offer employer-assisted housing, increased public-private partnerships and easing regulations for repurposing commercial sites, such as mills and shopping plazas, into housing.

Participants said increasing affordable child- and elder-care options would help people return full time to the workforce.

Others said the state’s licensing and certification processes are onerous, slowing the entry of new workers into jobs like commercial driving, medical support and the trades. There were calls to better align high school education for jobs not requiring four-year college degrees and to promote the income opportunity of such jobs.

Given NH’s aging workforce, participants said marketing the state to younger workers is essential. Increasing lower-cost housing and public transit could help attract younger workers. Others said increased investment to expand NH’s green economy, including electric vehicle infrastructure, would attract new, younger workers. Several participants called for more investment in higher education to make colleges and universities more affordable for in-state students, reducing their flight from the state. Investment should include tax credits and better tax policy to incentivize employers to provide student loan debt relief, they added.

Granite State employers provide good jobs and advancement opportunities for hundreds of thousands of workers, but they’re facing major challenges and telling lawmakers they need help. Government policy and regulations enacted during the next two years can chart a course for sustained prosperity.

Michael Skelton is president and CEO of the Business & Industry Association. For more information, visit biaofnh.com.