Economic uncertainty appears to have slowed hiring substantially in NH during 2025, with average private-sector wages falling behind inflation during the year.
The latest data available from NH Employment Security show that employers filled about 2,200 fewer jobs in the state during 2025 than in 2024. That was a 0.3% decline in NH-based jobs.
National data show a similar, but slightly healthier, picture overall. While there were five months of employment declines nationally in 2025, overall employment ended 2025 slightly higher than in 2024.
More Workers Are Available
In the recent past, particularly in the years immediately following the pandemic, stagnation in number of jobs added in NH could be interpreted as the result of a workforce shortage. However, the labor market has changed substantially since February 2022 when there were an estimated 3.5 job openings for every unemployed person seeking work in NH. Seasonally adjusted data for 2025 suggests that figure declined to about 1.5 job openings per unemployed person on average during the year, and December 2025 data indicated only about one job opening for every unemployed person.
The unemployment rate in NH has increased. It averaged slightly above 3% during 2025, while the 2024 average was about 2.6%. The average number of unemployed people actively seeking work each month rose by about 3,600 between 2024 and 2025, and the size of the overall labor force also expanded.
While continuing unemployment claims have increased in 2025, they remain similar to 2018 levels, and average initial unemployment claims rose a relatively small amount in 2025. Neither dataset suggest significant layoffs across multiple industries. These data, paired with similar national trends, suggest widespread economic uncertainty was the primary cause of dampened job growth in NH, rather than a limited supply of workers.
Employment Changes Vary
While employers in most sectors reported an overall decline in the number of employees, health care and social assistance, the state’s largest employment sector, grew by 2,200 employees (2.2%) from 2024 to 2025. Arts, entertainment, and recreation employment grew a healthy 5.9%, adding about 900 workers.
Manufacturing employment declined by 1,200 workers (1.7%) and wholesale and retail trade lost at least 1,000 employees each. Federal and state government employment declined while local governments added a small number of jobs. Most other sectors held relatively steady.
Wages Slip Behind Inflation
Even before the recent increases in fossil fuel prices and other inflationary pressures, Granite Staters were facing rising costs for essentials. For the year ending in February—before the conflict with Iran escalated—the costs of food, housing, and household energy were already outpacing overall inflation in the northeastern United States.
Wages in NH did not keep up with the overall measure of inflation. In New England, annual consumer inflation was 3.2% between 2024 and 2025. Average private sector hourly wages, however, increased slightly less than 1%, and fell 2.2% after adjusting for inflation. That indicates an employee earning the average private sector wage in NH saw about one out of every $46 earned disappear to inflation.
Most sectors saw their average wages fall behind inflation in 2025, with wages in professional, business, private education, and health services slipping the most. Wages in trade, transportation, and utilities outpaced inflation.
Certainty and Uncertainty
While the economy faced challenges in 2024, it entered 2025 with key strengths, including a growing labor force. However, significant fiscal, geopolitical, and trade policy changes appear to have stalled hiring in 2025 and may continue in 2026.
National data suggests households are less prepared to weather an economic downturn now than four years ago. After a tepid 2025, economic headwinds have become a bigger threat to the financial well-being of families and businesses.
Phil Sletten is research director at NH Fiscal Policy Institute, an independent research nonprofit. For more information, visit nhfpi.org.
