2023 Measures of Growth Report Highlights Maine’s Enduring Assets and Need for Innovative Responses to Persistent Challenges

Posted on November 29, 2023 at 11:30 am.

Hallowell, Maine – November 29, 2023 – The nonpartisan Maine Economic Growth Council today released its 29^h annual Measures of Growth Report – a comprehensive snapshot of how the state’s economy is performing relative to our long-term goals, to other states, and to the nation.

The Report finds that overall, Maine continues to perform exceptionally well in terms of environmental stewardship and has made promising improvements to internet connectivity, entrepreneurship, and achievement of postsecondary degrees and credentials. However, the lingering impact of the pandemic on children’s mental health and learning, the high costs of housing and energy, and other systemic challenges continue to burden communities, businesses, and households.

The Council noted that Maine’s quality of life and other enduring assets set the stage to overcome challenges and for additional investments to achieve economic growth, a more resilient economy in an uncertain global environment, and long-term and more equitable prosperity.

“This Report provides critical insight into Maine’s economy and workforce,” says Steve Von Vogt, CEO, Maine Marine Composites and Co-Chair of the Maine Economic Growth Council. “We must continue to harness Yankee ingenuity, innovation, and public-private partnerships to capitalize on Maine’s unique strengths, respond our economic challenges, and eradicate systemic inequities.”

For the first time this year, the report highlights four examples of creative initiatives that are helping address some of Maine’s longstanding challenges. Look for our “Indicator in Action” stories within the Report about Downeast Broadband Utility, Nonantum Resort, Nyle Systems, and Telstar Academy.

“We hope other employers are motivated by the story of our hiring program for formerly incarcerated Mainers,” says Colby Marvin Bracy, Director of Human Resources and Philanthropy, Nonantum Resort. “These employees are very loyal. In part because we gave them a chance and they feel valued…but more because they prove to themselves and society that they are capable and reliable. They show up for work on time, they are resourceful, and they have great attitudes – it enriches the entire organization.”

For the second year in a row this year’s report brings special focus to Maine’s particular challenges in workforce availability and participation, an urgent issue in every industry and region. “The Report unpacks the dimensions and driving forces which stem from years of demographic, economic, and social changes compounded by a global pandemic.,” says James Dill, Director of the Diagnostic and Research Laboratory and Pest Management Specialist, UMaine Cooperative Extension and Co-Chair of the Maine economic Growth Council. “Overcoming these challenges and building the workforce Maine needs will require attracting more working-age people from other states and countries, retaining more of the young people born here, and helping people of all ages, genders, abilities, races, and ethnicities to improve their skills and participate fully in our economy.”

“There is also reason to be encouraged,” says Yellow Light Breen, President & CEO, Maine Development Foundation. “For the first time, the Council assigned a Gold Star to Postsecondary Degrees & Credentials – calling out Maine’s substantial progress over the past decade – reaching 55% of Mainers with a college degree or shorter-term educational or industrial certificate of value in 2021. This ranks Maine among the fastest improving of any state.”

In total, the 2023 Measures of Growth Report tracks 31 indicators that represent Maine’s assets and areas of challenge.

The Council assigns Gold Stars for significant progress in:

Wages: In 2022, wages remained above the EPSCoR average but fell 1.5% after adjusting for inflation.
Post-Secondary Degrees and Credentials: In 2021, 55% of Maine adults had a credential of value, up from 53% in 2019 on the way to the overall goal of 60%.
Internet Connectivity: In 2023, 86% of Maine locations have either average or broadband internet, up 8%.
Air Quality: In 2022, there were 24 moderately unhealth days, four fewer than last year.
Water Quality: In 2022, Maine maintained its excellent water quality rating.
Sustainable Forestlands: In 2021, the growth-to-removal ratio rose 8%to 1.43 and remained above the sustainability goal.

The Council assigns Red Flags for needed attention to:

Labor Force: Maine’s labor force shrank 1.5% to 675,000 in 2022.
Research and Development: In 2020, Maine’s R&D spending rose from1% to 1.1% of GDP — – but still significantly lags peer states and the target of 3%.
Fourth-Grade Reading: In 2022, 29% of Maine 4th graders were proficient in reading, a sharp drop from pre-COVID levels.Eighth-Grade Math: In 2022, 24% of Maine 8th graders were proficient in mathematics, down from 34% pre-COVID.
Cost of Energy: The price of industrial electricity rose 17%in 2022, mirroring nationwide increases.
State and Local Tax Burden: In 2021, Maine’s tax burden remained unchanged at 11.7%.
Housing Affordability: Housing affordability appears to have dropped in2022, but complete data are not currently available.
Mental and Behavioral Health: In 2020-2021, the percentage of children with a mental and/or behavioral condition rose 0.4%.

The Maine Economic Growth Council takes a nonpartisan, data-driven approach to presenting an unbiased picture of Maine’s economy and well-being. Measures of Growth is designed to be a resource for policy and decision makers at all levels, helping them to focus their efforts and understand the connections between the key issues affecting the state. The Report works in tandem with the Maine’s 10-Year Economic Development Strategy to inform policy and decisions in order to achieve overarching goals of growing Maine’s talent pool and workforce, increasing wages, and increasing the value of what we sell per worker. The Council is administered by the Maine Development Foundation (MDF).