News Summary
Rhode Island experienced a notable decline in employment, losing 2,400 jobs, the largest drop in over two years. Despite a slight improvement in the unemployment rate, which decreased to 4.8%, the state continues to face challenges. The job losses coincide with a reshuffle in Governor Dan McKee’s economic team following the resignation of the Commerce Corporation’s Secretary. Various sectors, particularly Accommodation & Food Services and Educational Services, reported significant job losses, while other sectors showed modest job gains.
Providence, Rhode Island – Rhode Island experienced a significant decline in employment in June 2025, losing 2,400 jobs, which marks the largest drop in over two years. This troubling trend comes as the state undergoes a reshuffle in Governor Dan McKee’s economic team, following the resignation of Liz Tanner, the prior Secretary of the Commerce Corporation. Jim Bennett has since been appointed to take over this crucial position.
Despite the job loss, the state’s unemployment rate registered a slight improvement, decreasing to 4.8%, down one-tenth of a percentage point from May. However, this figure is an increase from 4.4%% in June 2024. As of June 2025, there were 28,400 unemployed individuals actively seeking work in Rhode Island, representing a decrease of 400 from the previous month. Yet, this number illustrates an increase of 2,600 compared to a year prior.
In total, 559,000 residents were employed in Rhode Island during June, reflective of a modest rise of 200 from May. Nevertheless, this marks a decrease of 6,900 jobs since the same month the previous year. The overall labor force in the state totaled 587,400 in June 2025, which is a reduction of 200 from May and down 4,300 from June 2024. The labor force participation rate has also dropped to 63.6%, down from 64.5% a year ago. In contrast, the national labor force participation rate stands at 62.3%.
Analyzing sector-specific performance reveals that the state’s Accommodation & Food Services sector suffered the most, shedding 1,200 jobs in June due to a lower-than-expected seasonal hiring. Furthermore, the Educational Services sector experienced a reduction of 900 jobs, while the Health Care & Social Assistance sector saw a job loss of 700, largely attributed to ongoing labor disputes within the industry. The Government sector also reported a decrease of 400 jobs, impacting State, Federal, and Local employment.
Conversely, there were notable job gains in certain sectors. The Other Services category added 600 jobs, and the Construction sector gained 300 jobs, providing a glimmer of hope amidst the prevailing job losses.
Moreover, concerning unemployment insurance, Rhode Island saw an uptick in first-time claims, averaging 864 in June, which is up from 840 in May and 39 higher than June 2024 claims. This upsurge reflects ongoing challenges in the job market as many individuals continue to face hurdles while seeking viable employment.
In light of these developments, the Rhode Island Department of Labor and Training has clarified that the recent job losses were noted since May. These changes within the workforce illustrate a complex economic landscape, with fluctuations in employment status and various sectors adapting to both seasonal and structural changes.
As the state of Rhode Island moves forward, the implications of these job losses and the restructuring within the economic team will be closely monitored, providing insights into future employment trends and economic recovery efforts.
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Additional Resources
- GoLocalProv: Rhode Island Loses 2,400 Jobs in May
- Patch: Rhode Island Jobs Down 2,400 in May
- PBN: R.I. Based Jobs Fall by 2,400 in June
- Providence Journal: Governor Dan McKee Unpopular Poll Numbers
- Brewbound: Rhode Island Southern MA Sales Rep
- Wikipedia: Rhode Island
- Google Search: Rhode Island Employment Trends
- Google Scholar: Rhode Island Labor Market
- Encyclopedia Britannica: Rhode Island
- Google News: Rhode Island Jobs Report
