Affordability is affecting both the cost of doing business and the ability of employees to build a life in Vermont. 

Healthcare and insurance costs emerged as the most frequently identified business challenge, cited by 59% of participating businesses. Healthcare affordability was also the leading individual policy priority, selected by 54%. 

These findings sit within a broader affordability challenge that includes housing, taxes, energy, wages, supplies, and other operating costs. Together, these pressures affect businesses’ ability to hire, invest, expand, and remain competitive. 

Why it matters: Rising costs affect businesses’ ability to invest and grow while making it harder for workers and families to stay and build a future in Vermont. 

Chart takeaway: Healthcare is the leading individual cost concern, but businesses are experiencing affordability pressures across multiple parts of the economy.  

Workforce availability remains one of the most persistent constraints facing Vermont businesses. Fifty-seven percent identified workforce availability as a major challenge.

When businesses were asked about recruitment, 67% cited the availability of qualified applicants, 53% cited housing availability, and 51% cited Vermont’s cost of living.

The results reinforce a fundamental economic connection: Vermont cannot address its workforce needs without also addressing whether workers can find housing and afford to live in the communities where jobs are located.

Why it matters: When businesses cannot find workers, growth is constrained. When workers cannot find housing or afford to live in Vermont, recruitment becomes even more difficult.

Chart takeaway: The availability of qualified applicants is the leading recruitment barrier, closely followed by housing and the cost of living. 

Business investment depends on more than demand. It also depends on whether businesses can anticipate costs, navigate requirements, and make long-term plans with confidence.

Sixty-eight percent of participating businesses said taxes and fees limit their ability to operate or grow in Vermont. Sixty-two percent identified regulation as a constraint, and 59% cited permitting.

Only 45% described taxes and fees as predictable, while 38% described them as unpredictable.

Investment expectations are mixed. Twenty-one percent expect investment to increase during the coming year, while 20% expect it to decrease. Thirty-three percent expect investment to remain about the same, and another 21% reported no investment in either the previous or coming year.

Why it matters: Greater predictability allows businesses to plan, commit capital, create jobs, and pursue growth with greater confidence.

Chart takeaway: Taxes, regulation, and permitting are widely viewed as constraints, while investment expectations remain divided. 

Business confidence depends partly on whether public decisions reflect an understanding of the conditions businesses are experiencing. 

Sixty-nine percent of participating businesses lack confidence in Vermont’s fiscal stewardship. Seventy-one percent lack confidence that elected officials understand the pressures affecting businesses. 

Fifty-six percent said the business community is not adequately heard in state policymaking, compared with 53% in 2025. At the same time, half said they are comfortable contacting their legislators directly. 

These findings point to both a challenge and an opportunity. Businesses want decisions to reflect economic realities, but meaningful engagement requires accessible channels and a clear connection between business experience and policy development. 

Why it matters: Durable economic policy is stronger when it is informed by the businesses making decisions about employment, investment, and growth. 

Chart takeaway: Most participating businesses lack confidence that state fiscal decisions and policymaking reflect the pressures businesses are experiencing.