ECONOMIC DEVELOPMENT

workforce characteristics

workforce size

The number of workers in the region aged 16 and over has declined by approximately 7 percent since 2000. As of 2020, there were 22,280 workers in the region as compared with 24,054 in 2000. This decline has been forecasted given the large number of residents at or near retirement age. However, the economy also experienced an increase in retirement rates during the COVID-19 pandemic years, which likely accelerated this decline in the workforce. The significant housing shortage in the region has made it challenging to recruit younger workers to replace those retiring since they are not able to find a place to live.

With a smaller labor force to draw from, the region has seen a corresponding decrease in the total number of available jobs due to the challenges with filling open positions. Limited workforce availability is impacting all sectors, but the 2019 CEDS notes that the two industries most impacted are health care and manufacturing. This has ripple effects throughout the economy as there are fewer workers earning wages that in turn get reinvested in the local economy and support businesses.

workforce age

The region’s population is becoming older and more workers are reaching retirement age and fewer young people are entering the job market. Between 2010 and 2021, the percent of the Windham County population aged 65 or older grew from 16.2 percent to 24.6 percent. All other population age groups decreased during this time. According to the Vermont Department of Labor, the population aged 65 or older will increase by 82.3 percent between 2010 to 2030. At the same time, we will see a decrease by 17.8 percent in the 20 – 34 age range and by 20.7 percent in the 35 – 54 age range, which represents the prime working years for most people. This continued decline in the size of the workforce will negatively impact the region’s human capital and economic sustainability.

educational attainment

For the population aged 25 or older, approximately 47 percent of residents hold higher education qualifications beyond a high school diploma. Roughly 23 percent of residents hold a Bachelor’s Degree and 18 percent a Graduate Degree. A well-educated workforce helps retain and attract higher paying and specialized jobs for the region. It is also important to consider educational attainment of the workforce in terms of ensuring a correct match between employer’s needs and the training of the workforce. As discussed early, the 2019 CEDS identified workforce development as an important goal in the years ahead. As the economy evolves and industry needs change, workforce training will need to adapt to meet the needs of businesses. 

income level

According the American Community Survey (ACS), the median household income for the region was $58,514 in the 2015 – 2019 5-year estimate. This compares with a median household income of $63,001 for the state. The 2015-2019 ACS also estimated that Windham County had a poverty rate of 13.4 percent, compared to 11.3 percent in neighboring Bennington County and 9.4 percent in Windsor County. Generally, growth in the median household income for the Windham Region has kept pace with the state average going back to 1989. However, between 2009 – 2019, the state median household income increased at a higher rate than the region as shown in the chart below. According to the 2019 CEDS, median household income for the region was expected to grow only 7 percent over the upcoming 5 years as compared with 11 percent for the United States. 

One factor that may be contributing to the lower growth in income levels for the Windham Region is the closure of the Vermont Yankee nuclear power plant in Vernon in 2014. Vermont Yankee was formerly the largest employer in the region and many positions at the plant offered higher than average incomes. Another factor is the outsized role of tourism for the local economy, which includes accommodation and food services, retail trade, and arts, entertainment and recreation industries. These industries have lower average earnings and also higher levels of seasonality. Finally, as the population ages and residents retire more are relying on social security, which is not counted towards household income. As a result of lower income growth, there is less money circulating in the local economy which can be detrimental to businesses, especially service-based industries like retail, personal services, and restaurants. 

unemployment

The unemployment rate in Windham County has consistently tracked lower than Vermont and the national rate. Over the previous ten years, the highest unemployment number for Windham County was 5.8 percent towards the end of the Great Recession. Since then, the unemployment rate has declined to a low of 2.2 percent in 2018. There was an increase in unemployment in 2020 associated with the COVID-19 pandemic and its impacts on the economy, but employment numbers have since improved and are currently at 2.1 percent as of November 2023. The very low unemployment rates in Windham County and Vermont are indicative of a tight labor market where employers are facing challenges filling openings.