July

21

Supporting high-paying, skilled jobs—and attracting new ones—is the bedrock of re-inventing Maine’s economy for a prosperous future.

The following editorial was published by the Portland Press-Herald on July 28, 2024. Read on Portland Press Herald. It’s a fact: Maine’s economy is in trouble. New data shows that Maine is among the least productive states in the nation. The state creates fewer jobs, attracts less investment, and starts fewer businesses than most other states. Within those jobs, worker wages are low and have not kept up with costs for food, energy, healthcare, and more. To the experts, Maine lacks many of the hallmarks of a competitive location for business. However, none of these are forces beyond control. With a strategic plan that builds on current assets and strengths, Maine people can create a distinctive economy that will put us in healthy competition with other states and global partners. An important step is to focus on reviving and growing the bedrock of thriving communities: foundational jobs.

The importance of foundational jobs

Foundational jobs add value by producing goods or bringing in money from outside the state. Historically, Maine’s prosperity came from industries like farming, fishing, forestry, transportation, and manufacturing. For example, before refrigeration, the ice industry employed 90,000 people and would be valued at $660 million today. Foundational jobs can still be found in those industries, as well as in energy, construction, and new technologies. These jobs drive business expansion, increase tax revenue, and support public services like education, infrastructure, and law enforcement. Without foundational jobs, sustained economic growth is unattainable. Unfortunately, foundational jobs have steadily declined in Maine. Over the past 15 years, Maine has lost more than 20,000 of these jobs, shrinking from 44% to just 14% of the job market. Since the 2008 recession, Maine’s economy has been the slowest growing in the nation, with projected job growth of less than 1%, compared to the national average of 6%. Worse, these new jobs are mostly in lower-wage service sectors. This decline has resulted in lower wages, reduced spending, and a shrinking tax base, leading to an economic downturn. Young workers are leaving, contributing to Maine having the highest percentage of people over 65 and, historically, the lowest percentage of people under 18 in the country.

Challenges and the need for a strategic plan

Despite this trend, Maine lacks a long term plan to protect and grow these industries. Foundational jobs have been outsourced or moved to lower-cost states, but Maine faces additional hurdles, including high costs for electricity, heating, healthcare, and taxes, coupled with generally lower wages. Therefore, what should be a noncontroversial goal—growing good paying jobs that support families and communities—has become political. Issues like tax rates, public spending, education, business regulation, housing, energy and healthcare costs consistently become isolated, cyclical political debates, rather than viewed as pieces to solving Maine’s economic challenges. Consensus is vital to creating comprehensive, long term solutions to these important challenges.

Opportunities for the future

Technological and industrial developments present new opportunities to expand into tech manufacturing, wireless infrastructure, and other emerging industries that can rejuvenate Maine’s economy. Encouraging small business growth and attracting highly skilled workers will improve tax revenue and drive economic revival. Only by working together can residents and legislators create needed foundational jobs and deploy a long term economic plan that will secure a brighter future for all of Maine. Key aspects of this plan include: • Reducing costs for Maine businesses, especially small and medium sized foundational enterprises, so they can take risks and expand • Training and educating the workforce for skilled trades and foundational job sectors • Identifying and attracting emerging foundational industries and associated jobs to Maine • Organically increasing state revenue to support public services and infrastructure • Reducing costs for resident families and businesses • Evaluating the long term economic impact of new laws, especially as they pertain to foundational jobs and foundational job security