AP/Toby Talbot

Molly Pepin, left, and her brother, Miles, swing at the Family Center of Washington County on Wednesday in Montpelier.

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

The annual Annie E. Casey's report released today 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.

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.

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