#

Two new reports show Granite Staters are on solid financial footing heading into the holidays compared to the rest of the U.S.

New Hampshire residents have the second highest credit scores on average in the nation according to a data analysis by Wallethub. At the same time, the labor market is improving, with New Hampshire experiencing one of the biggest week-to-week drops in new unemployment claims.

Frugal Yankees in New Hampshire hold an average 719 credit score, second only to Minnesota’s 724, Wallethub reports. The national average is 695, which means most Americans are just below the 700-score considered good credit, according to WalletHub’s findings.

Vermont, Massachusetts, and South Dakota round out the top five with average scores above 700. Alabama at 672, Louisiana at 668, and Mississippi at 662 are the three states with the worst average credit scores.

Patrick A. Cozza, who teaches business at Fairleigh Dickinson University, said the best way to build good credit is to pay your bills on time. Minimizing the use of credit cards is important as well.

“The simple answer again is to manage only the debt you can handle, do not overly subscribe to credit by securing additional credit cards,” Cozza said. “People feel more is better than few, but it could lead to real credit problems down the road if you cannot effectively manage the debt.”

The early days of the COVID-19 pandemic, with business closures and high unemployment rates, put a lot of people into debt. Those who used credit cards to get by during the pandemic can dig their way out of debt and toward a better credit score, Cozza said.

W.H. “Joe” Knight at Seattle University School of Law said it is important to pay down debt and build savings.

“More Americans are saving more these days because of the fewer opportunities to shop, eat out, etc. Accumulate savings and apply some of those extra ‘saved dollars’ to the largest interest-charging creditor bills,” Knight said. “Slow but sure progress to improving a credit score, reducing the total amount of credit you have outstanding.”

New Hampshire residents are keeping up with their bills, and they are working. The Granite State keeps seeing unemployment rates drop, behind only Kentucky for the most recent unemployment rate report.

The labor market is still experiencing the effects of the COVID-19 pandemic, and there are more opportunities being created, according to Thomas Kohler at Boston College Law School.

“A large number of Baby Boomers left the workforce during the pandemic while other workers changed jobs, a good example being the hospitality industry,” Kohler said.

With more opportunities for willing workers, the pressure is on employers. Employers who want to find and keep workers have learned they need to increase pay and benefits, given the new realities of the labor market.

“I think it will take some time for the situation to become clearer, but it seems increasingly clear that people are unwilling to perform unpleasant work at poor rates of remuneration with no voice in their working conditions. Hardly surprising, I would say,” Kohler said.

New Hampshire’s 2.4 percent unemployment rate in October was well below the national average of 3.7 percent reported by the Bureau of Labor Statistics. But it was not the lowest in the nation. That honor went to Minnesota and Utah at 2.1 percent each. Vermont and North Dakota at 2.3 percent also edged out the Granite State. Those numbers reflect a tight labor market that some economists say could restrict growth.

According to the U.S. Chamber of Commerce, New Hampshire is suffering one of the most severe labor shortages in the nation, with just 44 unemployed workers for every 100 open jobs.

However, Jeffrey Arthur, a Professor of Management at Virginia Tech, said while employees have the upper hand now, the economic tide will turn to favor employers.

“Employees are more likely to feel empowered to form and join labor unions at places like Amazon, Starbucks, and other retailers where they have not been able to do this in the past. Employers are also motivated to provide employees with additional benefits such as tuition reimbursement and flexible work arrangements in order to attract and retain them,” Arthur said. “These changes may be short-lived, however. If the economy slows and unemployment increases, I expect to see the balance of power tilting back to employers. These cycles have happened in the past.”

Call it the Granite State Grind.

A new study finds New Hampshire residents are the hardest working in New England, though resulting wage gains are not keeping pace with inflation. 

According to findings from the data analysts at WalletHub, New Hampshire ranks ninth in the nation on Labor Day 2022, the only New England state ranked in the top 10. The hard work is evident in New Hampshire’s economic output, which ranks near the top of all 50 states in terms of growth and low unemployment.

Vermont is ranked number 26; Maine at 30; Massachusetts at 44; Connecticut at 45; or Rhode Island all the way down at 49, between New York (48) and New Mexico (50).

North Dakota, Alaska, and Nebraska are at the top of the list.

The WalletHub study looked at data points like average workweek hours, the share of workers with multiple jobs, and annual volunteer hours per resident. Massachusetts, Vermont, and Rhode Island rank near the bottom in terms of average hours per week.

Vermont and Connecticut rank near the top for average leisure time per day. Massachusetts, Vermont, and New Hampshire also have the lowest rates for idle youth in the study.

There are challenges ahead for New Hampshire employees and employers. According to a report by the New Hampshire Fiscal Policy Institute, despite a strong recovery from the COVID-19 economic crash, a critical labor shortage remains.

“Job growth in the last two years has been much faster than originally expected, mirroring other rebounding indicators of a strong economy, in large part due to swift federal policy action to provide both relief and financial support for the recovery,” the NHFPI report stated.

While the current strong economy means better pay and conditions for workers, those same workers are now paying more for food, energy, childcare, and housing.

“However, many Granite Staters find themselves struggling with rising housing costs, limited childcare options, and significant increases in living costs due to inflation as these key pandemic-related programs wind down or near their expiration. Among families with low and moderate incomes, and particularly those in rural areas of the state, these challenges have become even more pronounced,” the NHFPI report states.

According to a report in the New Hampshire Business Review, wages are up in the Granite State as the country recovers from COVID, thanks in part to the labor shortage creating supply and demand pressure that favors labor.

“Overall, hourly wages increased by $1.38 an hour annually, though they actually went down slightly from April by 11 cents. However, education and healthcare workers averaged $34.84, an annual increase of $3.12. Leisure and hospitality workers average $20.02, a $2.12 increase,” NHBR reports.

Still, a growing number of low to middle-income Granite Staters are working multiple jobs and are unable to keep up with inflation, according to the NHFPI report.

“Rising inflation has made making ends meet and paying for usual household expenses more difficult for individuals and families in New Hampshire,” the report states.

Consumer prices increased nationally by 9.1 percent between June 2021 and June 2022, the largest 12-month increase in inflation since December 1981, with energy prices increasing 41.6 percent from the prior year, according to the NHFPI report.

Even though wages went up due to the labor shortage, the raises are not keeping pace with the record-setting inflation.

“While nominal wages did increase during the same period, the average inflation-adjusted private-sector hourly wage in New Hampshire was 2.6 percent lower in July 2022 compared to July 2020. When price increases outpace wage growth, the purchasing power of consumers falls and financial pressures increase,” the NHFPI report states.

Thousands of housing units could be added to New Hampshire in the coming months if Gov. Chris Sununu and his allies in the state’s business community get their way.

Sununu unveiled details of his $100 million investment plan on Tuesday. He hopes it will alleviate the housing crisis that experts say is making it harder for employers to recruit workers and for young people to remain in the state.

Starting next week, developers will be able to apply for money from the new InvestNH Housing Fund, which will help cover the financial gaps in hard construction costs on affordable multi-family developments.

“We’re moving quickly. We don’t want to just talk about things in this state, we want to make them happen,” Sununu said.

Though New Hampshire’s economy is booming, the lack of affordable housing could put that growth in danger. There are tens of thousands of high-paying jobs available in New Hampshire, but not enough potential workers can find places to live, Sununu said.

“We just need affordable housing in this state to keep up with the level of economic growth,” Sununu said.

Elissa Margolin, director of Housing Action NH.

Businesses cannot find workers, and people are not taking jobs in the Granite State because there is nowhere to live. Ellisa Margolin, director at the non-profit Housing Action NH, said the $100 million fund represents a serious effort to address the crisis that impacts the state’s entire economy.

“The workforce shortage that we’re experiencing is directly related to our shortage of housing in this state,” Margolin said. “If it’s difficult for a new medical resident to accept his residency at an area hospital because he can’t find housing he can afford, you can imagine what it’s like for a single parent with children.”

Nicole Ward, general manager at the Copper Door in Bedford, is lucky enough to live in workforce housing located behind the restaurant. She said the potential for more businesses to be able to provide affordable housing for employees will make for better businesses and communities.

“I just think a project like this, being able to provide more affordable living for employees like myself, would lead to a better work ethic, more longevity and less turnover, and a better work environment altogether,” Ward said.

The InvestNH Housing Fund will use money from the state’s portion of the American Rescue Plan Act. The fund will direct $60 million to go toward developers. Of that, $10 million will go to the New Hampshire Housing Authority, and another $10 million is earmarked for non-profit and small-scale for-profit developers.

The remaining $40 million is going to municipalities to help streamline the process to get the projects built. There is also money municipalities can use to demolish old structures and for updating zoning ordinances to meet current needs.

Taylor Caswell, New Hampshire’s Business and Economic Affairs commissioner, said the state wants to encourage affordable multi-family developments, whether it is a large apartment project or a small Victorian home on Main Street that could be converted into a five-unit apartment building.

“The goal is to get more units online as fast as possible,” he said.

According to the Josiah Bartlett Center for Public Policy, a free-market think tank based in Concord, the unwillingness of communities like Manchester to allow more housing construction has limited their growth when compared to nearby communities.

Between 1970 and 2020, the total number of housing units in the Queen City grew by just 37 percent. In Salem, they grew by 76 percent, in Nashua by 80 percent, and statewide by 127 percent. As a result, Manchester’s population and economic growth also lagged behind.

“Because city officials chose to limit growth, Manchester’s population and economy have grown at a slower rate than the rest of the state as a whole,” wrote the Bartlett Center’s Drew Cline. “Artificially limiting the city’s housing supply created a drag on the city’s economic growth and cultural life.”

The state’s housing shortage, which is contributing to its employee shortage, is just one of the current challenges facing the state. Another is the recent announcement of soaring electricity rates from the state’s largest utilities.  Sununu recently announced a $60 million utility bill relief package that includes a one-time $100 dollar grant to some 600,000 electric ratepayers. He also has plans to address the looming home heating crisis that will take hold this winter as oil costs continue to skyrocket.

Sununu said Washington is to blame for rising prices that are hurting New Hampshire families.

Commissioner of the New Hampshire Department of Business and Economic Affairs Taylor Caswell.

“This energy crisis in America — the Biden administration has created a massive problem,” Sununu said Tuesday. “When it costs you twice as much to put gas in your car, it’s going to cost you at least twice as much to put home heating oil into your tank.”

Sununu’s Democratic opponent in November’s election, state Sen. Tom Sherman (D-Rye) dismissed Sununu’s efforts as too slow and lacking in transparency.

“New Hampshire’s housing crunch is making it difficult for families to pay their bills each month and companies to find workers,” Sherman said. “While Granite Staters have been struggling for years, Sununu delayed so long in distributing rental assistance funds that nearly $20 million in federal funds were reallocated to other states. Sununu was the last governor in the region to put ARP funds towards affordable housing and chose to create a brand new program with more red tape instead of efficiently investing in existing programs. We need to make sure this is a transparent process that helps Granite Staters, not just a handout to campaign donors during an election year.”

Sununu said he was working with House Speaker Sherman Packard, R-Londonderry, and Senate President Chuck Morse, R-Salem, to address the heating crisis using state surplus funds. Sununu’s plan would allow the state to expand eligibility for heating assistance so that more families would be able to benefit. He is not interested in waiting for Congress to change the rules to make the federal assistance program more accessible as Granite Staters struggle to heat their homes. 

“We are not going to wait for the winter to see if the feds get around to fixing their problem,” Sununu said.

Information about the InvestNH Housing Fund and how to apply can be found at www.invest603.com. 

First “Big Pharma.” Then “Big Oil.” Now…”Big Tampon?”

On Monday, U.S. Sen. Maggie Hassan sent a press release headlined, “Following Reports of Tampon Shortage, Senator Hassan Calls on Major Tampon Producers to Increase Supply.” It’s part of her “work to hold corporations accountable for unfair price increases and address shortages.”

Except, like her allegations about oil companies manipulating gas prices, Hassan’s claim of price-gouging by the feminine hygiene industry is unfounded.

“Access to menstrual products should be treated like every other essential good. At the beginning of the pandemic, price gouging of essentials like toilet paper, cleaning supplies, and hand sanitizer was rightly criticized as an exploitation of an emergency for financial gain. Menstrual products should receive that same consideration,” Hassan wrote in a letter to the CEOs of Procter & Gamble, Edgewell Personal Care, Kimberly-Clark, and Johnson & Johnson.

Hassan’s accusation of “unfair price increases” does not appear to be supported by the facts. Instead, “supply chain issues and historically high inflation have affected all manner of goods,” Axios reports, including tampons. COVID drove up demand for plastic and cotton to make personal protective equipment, both key materials for making feminine hygiene products.

And, like much of the shortages seen over the past couple of years, COVID-related supply chain issues are having an impact as well. Shipping costs to move material and products have also gone up as diesel fuel prices continue to climb. Add to that the ongoing labor shortage many companies are experiencing.

Then there is the impact of Russia’s invasion into Ukraine, constraining the normal supply of fertilizer used to grow cotton, further exacerbating supply issues. The price of raw cotton is up more than 70 percent.

And there is another twist Hassan doesn’t mention: Amy Schumer.

Procter and Gamble spokeswoman Cheri McMaster told Time that part of the blame belongs to comic Amy Schumer. She stars in a series of commercials for their products that have been wildly successful. “(R)etail sales growth has exploded,” McMaster told Time.

As the demand went up more than 7 percent, Procter and Gamble started running its Maine plant 24/7 to try and keep up. The industry says it is looking for ways to increase production.

“While the tampon shortage is part of a larger supply chain issue, price-gouging essential products is an unacceptable response,” Hassan said — without providing any effort of gouging.

“We understand it is frustrating for consumers when they can’t find what they need,” a P&G spokesperson told CNN. “We can assure you this is a temporary situation.”

In her tampon shortage press release, Hassan also pointed out she “led legislation to require a federal investigation into reports that Big Oil was artificially raising gas prices, and follows Senator Hassan’s previous calls for additional actions and updates regarding the FTC’s oversight of anti-consumer trade practices in the oil and gas industry.”

Hassan’s claim that oil companies have manipulated gas prices has been repeatedly investigated and dismissed by both Democratic and Republican administrations.

Political observers say what’s really at play is giving Hassan another way to motivate women voters, particularly young women who tend to vote Democrat and also tend not to show up in midterm elections. Hassan had campaigned aggressively on the abortion issue, which she refers to as a “women’s health” issue, advocating abortion without limits up to the time of birth.

Interestingly, one word that doesn’t appear anywhere in Hassan’s “tampon shortage” letter or press release?

“Women.”

(To be fair, the progressive phrase “people who menstruate” didn’t appear, either.)

Hassan said she is giving the CEOs of personal hygiene manufacturers until June 17 to come up with a solution.

Voters are giving Hassan until Election Day.