News Summary

In June, Rhode Island faced a significant employment drop, losing 2,400 jobs, the highest since April 2023. While the unemployment rate decreased to 4.8%, over the past year, job numbers dropped by 400. Key sectors like Accommodation, Food Services, and Education faced the brunt of the job losses, raising concerns about the economic landscape in the state. Authorities may need to consider strategies for job creation amid ongoing fluctuations in the market.

Rhode Island Reports Significant Job Losses in June

Rhode Island experienced a notable drop in employment in June, shedding 2,400 jobs. This decline marks the most significant one-month job loss since April 2023, according to the Rhode Island Department of Labor and Training (RIDLT).

Despite the job losses, the state’s unemployment rate decreased to 4.8%, down one-tenth of a percentage point from the previous month. However, year-over-year comparisons show that job numbers have decreased by 400 since June 2024, alongside a shift of 2,600 more residents becoming unemployed over the same period.

State Employment Data

The total number of unemployed Rhode Island citizens now stands at 28,400, reflecting a decrease of 400 compared to May. The state saw a slight uptick in the total employed population, which totaled 559,000, up by 200 from May. However, this figure is down 6,900 compared to last year.

In June, the Rhode Island labor force was counted at 587,400, declining by 200 since May and by 4,300 compared to June 2024. Rhode Island’s labor force participation rate for June was reported at 63.6%, lower than the 64.5% rate observed in June 2024. For context, the national labor force participation rate was 62.3%.

Unemployment Insurance Claims and Sector Performance

First-time claims for Unemployment Insurance averaged 864 in June, an increase from 840 in May, also marking an average rise of 39 claims per week from June of the previous year.

The job losses in June were primarily concentrated in the Accommodation & Food Services sector, which saw a decrease of 1,200 jobs. This decline resulted from hiring not meeting seasonal expectations. Other sectors significantly affected included Educational Services, which lost 900 jobs, and Health Care & Social Assistance, which experienced a loss of 700 jobs, partially attributed to a labor dispute.

Additionally, the Government sector also saw losses totaling 400 jobs, with State (-200), Federal (-100), and Local (-100) government positions affected. On a positive note, several sectors reported job gains; the Other Services sector added 600 jobs, and Construction saw an increase of 300 jobs.

Conclusion

The recent job losses reflect a challenging economic environment for Rhode Island, with multiple sectors struggling to maintain employment levels amid ongoing market fluctuations. Continued efforts from local authorities and businesses will be crucial in addressing these trends and fostering job creation in the coming months.

Deeper Dive: News & Info About This Topic

• GoLocal Prov: Rhode Island Loses 2,400 Jobs
• Patch: Rhode Island Jobs Down 2,400 in May
• PBN: Jobs Fall by 2,400 in June
• Google Search: Rhode Island unemployment
• What’s Up Newp: Rhode Island Adds Jobs
• Wikipedia: Economy of Rhode Island