MONTPELIER (AP) - Vermont is third best in the nation in a national survey of children's well-being.

The annual Annie E. Casey's report released Wednesday shows that Vermont made improvements in children's health, education and in family and community. But more children are living in poverty.

In 2010, 17 percent of Vermont's children were poor, which is a 13 percent increase from 2005. And the rate of children with parents that don't have secure employment rose to 31 percent.

"This data emphasizes that the recession continues to take a toll on Vermont children and families," said Carlen Finn, executive director of Voices for Vermont's Children. "Despite our high ranking among states, far too many families are struggling to make ends meet."

But Vermont showed progress in the percentage of children without health insurance - which dropped from 4 percent in 2008 to 2 percent in 2010. The state also saw an increase in the rate of high school students graduating on time.

"These positive trends illustrate we have a lot to be proud of," said Melissa Christie, research associate of Voices for Vermont's Children. "Vermont's commitment to health and education has improved outcomes for kids."

New Hampshire had the top score based on 16 indicators. Massachusetts was second.

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