New Hampshire lawmakers can make gains toward solving some of the greatest challenges facing the business community this session. Building greater prosperity for more Granite Staters requires addressing workforce development, housing, education and childcare. It’s critical to continue to create a business climate that gives NH a competitive edge over other states.
The Granite State has incredible opportunities with the burgeoning biofabrication and life sciences sector and growing advanced manufacturing sector. These two sectors will create additional opportunities in our high-tech industry and educational system, and growth will spread throughout our economy, creating thousands of high-paying careers.
However, extending and sustaining this prosperity requires solving NH’s two biggest and inextricably intertwined challenges—worker and housing shortages. More than 27% of our workforce is age 55 or older—the highest in the nation—and NH faces the retirement of an estimated 200,000 workers in coming years. Recruiting and retaining the next generation of workers depends on significant action this legislative session as it will take years for housing spurred by new policies to be built.
Overly restrictive state and local land-use policies contributed to a hollowing out of NH’s younger population as housing inventory steadily fell short of demand and prices spiked. From 2013 to 2023, the 70 to 74 age bracket grew the most. Meanwhile, the 45 to 49 bracket saw the greatest decrease, and all age brackets under age 24 declined. The result is our workforce shortage and declining enrollments in our K-12 and post-secondary systems that could worsen in coming years without meaningful action.
Modernizing land-use policies will provide the most significant solution to solving our chronic housing shortage. The NH Statewide Housing Needs Assessment reports nearly 90,000 new units are needed by 2040 to meet expected demand. Getting there requires
pragmatic approaches.
The BIA is collaborating with an array of partners that we call the Housing Supply Coalition. Priorities include backing legislation to make high-density neighborhoods more possible, expanding the ability to create accessory dwelling units, streamlining regulatory reviews, providing state funding for infrastructure to support new housing, and continuing to invest in the state’s Affordable Housing Fund.
While long-term solutions to the worker shortage depend on more housing, increasing access to quality and affordable childcare can provide some immediate relief as today’s limited supply prevents many parents from reentering the workforce. The Legislature should build on recent progress and support legislation to permit more home-based care options along with investments to incentivize workers to enter the field and lower costs for parents.
While it’s expected to be a tough budget year, lawmakers should be mindful that NH’s K-12, community college, and university systems build future workforces. In particular, the university system attracts young people to the state and retaining in- and out-of-state students is critical to replenishing our workforce.
It’s essential to strengthen partnerships between the education system and business community as participation in apprenticeships and internships increases the likelihood of students staying in the state after graduation.
Additionally, promotion of education for well-paying careers with high demand for workers can ease critical shortages and increase prosperity. This includes the trades and high school career and technical education centers.
Workforce development and housing are NH’s biggest challenges. Solving them will build a better business climate, stronger economy, greater prosperity, and broader base for state revenue for reinvestment. There are no simple solutions, but progress is made through dedicated, consistent efforts, and the BIA is ready to unify business support this session to make NH an even better home for everyone.
Michael Skelton is president and CEO of the Business & Industry Association (BIA), the statewide chamber of commerce and state affiliate of the National Association of Manufacturers. The BIA’s membership includes over 400 businesses, chambers of commerce, nonprofit organizations and associations. For more information, visit BIAofNH.com.
