Research & Publications
Sound, timely, and accessible, focused on affecting equity, sustainability, and shared prosperity through budget, tax and economic policy.
State of Working Vermont 2024
Vermont has one of the highest gaps between wages and costs in the country. This mismatch leaves many Vermonters struggling to afford their basic needs.
The state has made some improvements on affordability in recent years, but in other areas policies have fallen behind. Targeted investments would make a big difference for Vermont families’ economic security. In fact, under Vermont statute, the purpose of the state budget is to address Vermonters’ need for health, housing, dignified work, education, food, social security, and a healthy environment. And Vermont has the resources to honor these obligations and make the state more affordable.
The latest State of Working Vermont Report analyzes U.S. Census and other data including costs, income, and wages to look at how Vermonters are doing and pinpoint the areas where the state can make reasonable policy improvements to help more all residents afford to meet their basic needs.
Economic Security 101
What do we need to do to make Vermont affordable for all? Public Assets Director Steph Yu explains: we know Vermont has the resources to make the state affordable for everyone who lives here. Some of the solutions will take time, but there are also some that we can implement right now that will immediately improve family economic security and make sure that Vermont is affordable for all.
Vermont’s median income and workforce both grew
Vermont median household income rose to $81,211 last year—a 5.4 percent increase, after adjusting for inflation. Half of Vermont’s 280,000 households earn less than the median and half earn more. The rebound followed a drop in real income—that is, a loss of buying power after adjusting for inflation—in 2022.
More Vermonters are working than ever before
Vermont had 3,900 fewer jobs in 2023 than before the pandemic in 2019. But according to newly released data from the Vermont Department of Labor, the losses have not been evenly distributed. In fact, five Vermont counties showed net gains from 2019 to 2023, while the other nine saw net losses. Between 2022 and 2023, all Vermont counties saw job growth, ranging from 23 jobs in Essex County to 1,791 in Chittenden County. The state gained 5,500 jobs that year.
Vermont employment and income are highest ever
Vermont personal income grew by 5.5 percent in 2023—to $43 billion total—the fastest growth in New England and slightly faster than the U.S. as a whole. The major components—earnings, dividends, interest, rent, and transfer payments—all increased, with transfer payments seeing the strongest growth. Transfers include Social Security, unemployment, medical (including Medicaid and Medicare), and other income from government sources. Personal income does not include capital gains.
Julie Lowell to Senate Finance on anti-poverty tax credits
A presentation by Julie Lowell to the Senate Finance Committee on Anti-poverty Tax Credits, April 17, 2024
State of Working Vermont 2023
Big challenges confronted Vermont in 2023. Much of the state was inundated by the second “100-year” flood in a dozen years. Meteorologists recorded 2023 as the hottest year on record. New variants of Covid kept arising, and pandemics are predicted to become more frequent. Problems we faced before Covid are still with us: poverty, food insecurity, shortages of affordable housing and childcare. And the pandemic seems to have made some problems worse, such as inadequate mental health services, especially for children.
Steph Yu to House Ways and Means on State of Working Vermont 2023
A presentation by Steph Yu to the House Ways and Means Committee on the State of Working Vermont 2023, April 4, 2024
The labor market—and Labor—start 2024 on the upswing
Vermont saw more than a 20 percent increase in the number of workers represented by unions in 2023. Union representation—meaning both union members and nonmembers covered by union contracts—rose to 46,000 in 2023 from 38,000 the previous year, the biggest increase in at least a decade.
From 2018 through 2023, the share of Vermont workers covered by union contracts rose to 15.4 percent from 11.6 percent. That moved Vermont into seventh place among the states, by percentage of coverage. Hawaii leads the country, with more than a quarter of workers represented, while the U.S. as a whole comes in at 11.2 percent, about 16 million workers.
Jobs and employment return to pre-pandemic levels
Total nonfarm payroll jobs increased by 2,000 in January, topping 311,500 for the first time since March 2020. But the mix of jobs has changed. Jobs in the Professional and Business Services sector have increased by nearly 4,000. Meanwhile, the numbers in the Private Education and Health Services and Leisure and Hospitality sectors remain below their January 2020 levels—falling about 2,700 and 2,300 short, respectively.
More Vermonters are working and looking for work
During the post-holiday spike in Covid cases, many working Vermonters have probably needed sick time. But not all of them have it. A recent report from the Center for Law and Social Policy shows that while Vermont is one of 15 states with paid sick leave laws, access here varies by income level and job status.
Low-wage workers and part-time workers are less likely to have sick leave: 27 percent of those in the lowest quarter of the income scale lack access, compared with 8 percent at the highest end. And three in 10 part-time Vermont workers cannot take time off when they’re ill. But Vermont workers are still better off than their counterparts in most states: Four in 10 low-income workers across the country do not have sick leave, and 44 percent of part-time workers are not covered.
Vermont’s workforce is growing, but not fast enough
Vermonters continued to find work in recent months, and at the start of the year employers filled jobs at a record pace. But Vermont still has more jobs than people to fill them.
According to the most recent reports from the U.S. Bureau of Labor Statistics, Vermont workplaces had 2.7 jobs openings in October 2023 for every unemployed person—that is, someone without work who is actively seeking it. That ratio was down slightly from the summer months, but an increase over October 2022. Vermont’s ratio of job openings to job-seekers was nearly double the U.S. ratio in October.
We can reduce poverty, but will we?
We have the means to reduce poverty. What we need is the political will. That is the conclusion of a massive real-world experiment that took place during the Covid pandemic of 2020-2022. Now that the emergency has subsided, we are beginning to see the effects of actions—and the dangers of inaction—taken by political leaders to help people meet their ongoing basic needs.
Vermont Median Household Income Takes a Hit
The typical Vermont family saw modest income growth last year, but it was not enough to keep up with inflation.
Another Flood Casualty: Vermont Jobs
Last month’s devastating floods washed away jobs along with homes, cars, crops, office equipment, and documents.
Workers in eight counties can get disaster unemployment insurance
In the hardest hit parts of Vermont, flood recovery will take some time. But the federal disaster declaration for Caledonia, Chittenden, Lamoille, Orange, Rutland, Washington, Windham, and Windsor counties makes resources available immediately.
Public Assets’ statement on H. 471
There has been a lot of attention on the veto session this week and all that was accomplished this year—universal school meals, improved but imperfect investments in housing, and of course the signature accomplishment: the biggest investment in childcare in the country. But a less-noticed, otherwise unremarkable tax bill signed into law Monday by Gov. Phil Scott contained two important provisions also worth celebrating.
Vermont’s economy grew, job openings fell
Vermont’s economy grew 2.8 percent, after adjusting for inflation, in 2022—the second year of growth after a drop in 2020 at the start of the pandemic. Data released by the Bureau of Economic Analysis at the end of March show that Vermont’s gross state product—the total value of all goods and services—saw the highest growth rate in New England.
In 2022 Vermont’s gross state product also surpassed $40 billion for the first time, a rise from 2021 of more than $3.5 billion in unadjusted dollars.
Celebrate 20 years of fighting for a just and thriving Vermont!
Over the past 20 years, our deep experience, timely, reliable data, and clear, accessible analysis has driven major policy improvements for Vermonters, from expanding the Earned Income Tax Credit, to raising the minimum wage, and making school funding more equitable for all our kids.
In honor of our twentieth anniversary this year, we’ll be celebrating our past wins and inviting more people to get involved in our work.
Repealing the Child Tax Credit hurts Vermont families
Senate Bill 56 holds the promise of better childcare at lower cost to more Vermont families. But the bill as passed by the Senate in late March repeals the Child Tax Credit. This would harm the same families, and many others.
S.56 expands the Child Care Financial Assistance Program (CCFAP) and reduces the cost of care for many families. The bill also aims to improve the quality of childcare by increasing the amount CCFAP pays to providers. However, to help pay for the reforms, S.56 repeals the state Child Tax Credit (CTC) passed just last year, eliminating a $1,000 credit that eligible households now receive for each child under six. The repeal would leave at least 8,200 Vermont households worse off financially.
Vermont families need both the Child Tax Credit and childcare investments
The Vermont Senate voted Friday to repeal the brand-new Child Tax Credit (CTC) in order to redirect funds to early care and education.
But there is no reason to pit the two against each other.
Vermont needs both.
Vermont’s new Child Tax Credit: Improving life for families
Refundable tax credits are an important tool for reducing child poverty and advancing racial, social, and economic justice. They get cash to families efficiently, helping them meet basic needs like food, clothing, and housing. During the pandemic, when many people were out of work, the federal government used refundable income and child tax credits as quick ways of easing families’ financial struggles. Some states, Vermont included, followed their lead by passing state-level child tax credits.
What is the Vermont Child Tax Credit?
Vermont’s Child Tax Credit (CTC) provides $1,000 annually per child under 6 to families with adjusted gross incomes up to $125,000. It is fully refundable—families with low or no earnings can receive its full value. Families earning between $125,000 and $175,000 receive a partial credit. In 2023, over 95 percent of Vermont kids under 6—34,000 children—will benefit from the credit, making it the most robust in the country.
Ensure that families get the state Child Tax Credit
Amid rising prices and expiring pandemic assistance for housing, food, and other basics, there’s some good news for Vermonters and their kids. Families most in need—those with low or no earnings—with children under 6 can now receive $1,000 from the refundable Vermont Child Tax Credit when they file their 2022 tax returns.
But here’s the challenge: Many families with low earnings don’t have to file taxes—so they risk missing out on these credits. In 2019 the IRS estimated that 17 percent of Vermont filers did not claim the Earned Income Tax Credit, a similar refundable tax credit targeting families with low income, even though they were eligible.
Public Assets Institute releases State of Working Vermont 2022
As the pandemic winds down, report evidences need for “new normal” of security, equity, and shared prosperity MONTPELIER —State of Working Vermont 2022, released today, analyzes Census and other data, including wages, jobs, and employment, poverty, household income, and migration to portray Vermonters’ well-being before, during, and after the arrival of COVID. Before the pandemic: […]
State of Working Vermont 2022
In an accessible chartbook, State of Working Vermont 2022 analyzes Census and other data, including wages, jobs, and employment, poverty, household income, and migration to portray Vermonters’ well-being before, during, and after the arrival of COVID.
This year’s annual report highlights the progress achieved when our government adequately addresses the needs of people and communities. It shows how Vermonters would benefit from the state’s leaders fixing persistent problems, build on the solidarity expressed during the pandemic, and create a state that works for everyone.
