News Summary
Rhode Island’s unemployment rate decreased to 4.8% in June from 4.9% in May, marking its first decline after months of increases. Despite this drop, the state lost 2,400 jobs across various sectors. The labor force participation rate also fell to 63.6%, indicating ongoing challenges in the job market. The total number of employed individuals remains significantly lower than last year, presenting a mixed outlook for the state’s economic recovery.
Rhode Island has experienced a notable shift in its employment landscape, as the state’s unemployment rate declined from 4.9% in May to 4.8% in June. This change marks the first decline in the unemployment rate in several months, despite a reported loss of jobs across various sectors.
Although the unemployment rate has decreased, it is still approximately half a percentage point higher than the rate observed in June 2024, when it stood at 4.4%. According to the Rhode Island Department of Labor and Training, the state currently has over 513,000 individuals employed in non-farm jobs, while more than 11,000 of these positions are within state government.
Despite the slight improvement in the unemployment rate, June reported a significant loss of 2,400 jobs, following an increase of 1,100 jobs in May. This latest decline represents the largest monthly job loss since April 2023. Comparatively, the number of employed Rhode Island residents rose by 200 from the previous month; however, it decreased by 6,900 when considered on a year-over-year basis, totaling 559,000 individuals currently employed.
The number of unemployed residents in Rhode Island has seen a slight decline, with 28,400 individuals actively seeking work, down by 400 from May. Yet, this figure marks an increase of 2,600 compared to the same period in the previous year. The state’s labor force stood at 587,400 in June, reflecting a decrease of 200 from the previous month and a drop of 4,300 from June 2024. Consequently, the labor force participation rate has fallen to 63.6%, down from 63.7% in May and 64.5% in June 2024. For context, the national labor force participation rate is at 62.3%.
In terms of unemployment claims, the average number of first-time claims for Unemployment Insurance in June rose to 864, up from 840 in May and an increase of 39 from June 2024. This uptick indicates rising challenges for some workers in securing steady employment.
Sector-specific job losses were primarily felt in the Accommodation & Food Services, which saw a decline of 1,200 jobs due to disappointingly low seasonal hiring. Additionally, the Educational Services sector lost 900 jobs, and the Health Care & Social Assistance sector experienced a reduction of 700 jobs, a decline partially attributed to a labor dispute. The Government sector also reported losses, with state, federal, and local levels detailing a reduction of 400 jobs: state government lost 200, federal government 100, and local government 100.
Nevertheless, not all sectors reported declines. The Other Services sector gained 600 jobs, while the Construction sector saw an increase of 300 jobs, which helped to offset some of the broader losses. This contrast highlights the mixed nature of the job market in Rhode Island as it continues to recover from previous disruptions.
The Rhode Island Department of Labor and Training has clarified that the job losses referenced occurred between May and June, indicating ongoing changes for the labor market in the state. As Rhode Island navigates these transitions, the long-term effects on employment and economic stability remain to be seen.
Deeper Dive: News & Info About This Topic
- iHeartRadio: Rhode Island’s June Unemployment Rate Drops Slightly
- WPRI: RI Unemployment Rate Ticks Down to 4.8%
- Providence Business News: R.I. Based Jobs Fall by 2400 in June, Unemployment Still Dips to 4.8%
- Boston Globe: RI Unemployment Rate Highest in New England
- GoLocalProv: Rhode Island Loses 2400 Jobs in May, Largest One-Month Decline in 2 Plus Years
- Wikipedia: Economy of Rhode Island
- Google Search: Rhode Island unemployment rate
- Google Scholar: Rhode Island employment trends
- Encyclopedia Britannica: Rhode Island
- Google News: Rhode Island jobs
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
