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The stock market roared and housing costs soared. The tech industry grew and the jobless rate didn’t. As Maine and New Hampshire bid adieu to 2006, both states can take pride in economic indicators better than the New England average.

But the high cost of living and the cost of doing business in the two most Northeastern states are challenges that will carry over into 2007.

“We’re growing faster than any other state in New England,” said Fred Kocher, president of the New Hampshire High Tech Council. “The question is can New Hampshire continue to grow while the region’s economy is flat?”

Challenges also include affordable housing, health care, and helping new and existing companies find enough skilled labor when Maine and New Hampshire come to grips with an exodus of young people.

Job creation continues to be “Job No. 1.”

Maine Gov. John E. Baldacci and New Hampshire Gov. John Lynch, Democrats entering their second terms, start the new year focusing on preserving and creating jobs at the Portsmouth Naval Shipyard. The day after his re-election, Baldacci also visited Bath Iron Works.

“I will continue to work for all Mainers from Madawaska to Kittery and everywhere in between,” Baldacci promised workers.

Year to date, both states encountered challenges to the manufacturing sector, some success stories in the high-tech industry, and continued growth in retail trade.

In York County, construction work surged in 2006 and is projected to grow in 2007, according to a forecast by the Center for Business and Economic Research at the University of Southern Maine in Portland.

York County’s unemployment rate was 3.2 percent after September, a notable drop from the 4.7 percent rate in January 2006. York County picked up an additional 10,000 jobs in the first 10 months of 2006, according to estimates by the Maine state Division of Labor Market.

Rockingham and Strafford counties in New Hampshire posted 3.3 percent and 2.7 percent unemployment rates, respectively, according to October data released by the New Hampshire Employment Security. Entering the final months of 2006, the two counties together had 2,000 fewer unemployed people than when the year began.

In New Hampshire, the Jobs Cabinet established by Lynch will continue to examine how to make the state a great place to start, grow or relocate a business, said George Bald, commissioner of the state’s Department of Resources and Economic Development. The cabinet is comprised of state department directors, experts and stakeholders.

The governor and the group held roundtable discussions around the state over the past year to listen to the concerns and ideas of business and industry officials. The next year will find some of those ideas being implemented.

Lynch said one of the most common business concerns he has heard is the instability in energy costs. To that end, he proposed the state commit to getting 25 percent of its energy from renewable energy sources by 2025.

“It’s time to use our know-how and resources here in New Hampshire to reduce our dependence on foreign oil and to build a stronger economy by leading the world in the creation of new, clean energy,” Lynch announced in August.

Bald said four of the big issues in 2007 are: Energy costs, housing costs, telecommunication and Internet access, and education.

While New Hampshire’s unemployment rate may be low, Bald said finding work for people and people for businesses seeking help remains a top priority.