Rhode Island Loses 2,400 Jobs Since May - Largest One-Month Decline in 2 Plus Years

Rhode Island Loses 2,400 Jobs Since May - Largest One-Month Decline in 2 Plus Years

Rhode Island suffered its largest one-month job loss in more than two years, according to data released by the Rhode Island Department of Labor and Training on Thursday.

The loss of 2,400 jobs is the largest since April 2023.

The numbers are the latest hit for Governor Dan McKee’s administration. He has been trying to reshuffle his economic strategy with the “resignation” of outgoing Commerce Corporation Secretary Liz Tanner and the appointment of Jim Bennett to that position.

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Over the year, jobs decreased by 400 from June 2024

 

Rhode Island’s Labor Force - Nearly Every Indicator Showing Signs of Economic Weakness

 

- The June unemployment rate was 4.8 percent, down one-tenth of a percentage point from the May rate. Last year, the rate was 4.4 percent in June.

 

- The U.S. unemployment rate was 4.1 percent in June, down one-tenth of a percentage point from May. The U.S. rate was 4.1 percent in June 2024.

 

- The number of unemployed Rhode Island residents — those residents classified as available for and actively seeking employment — was 28,400, down 400 from May. The number of unemployed residents was up 2,600 over the year.

 

- The number of employed Rhode Island residents was 559,000, up 200 over the month but down 6,900 over the year.

 

- The Rhode Island labor force totaled 587,400 in June, down 200 over the month and down 4,300 from June 2024.

 

- The labor force participation rate was 63.6 percent in June, down one-tenth of a percentage point from May and down from 64.5 percent in June 2024. Nationally, 62.3 percent of U.S. residents participated in the labor force.

 

- Unemployment Insurance claims* for first-time filers averaged 864 in June, up from 840 in May. Claims were up an average of 39 a week from June 2024.

 

Sectors Impacted

The Accommodation & Food Services sector lost 1,200 jobs in June, as hiring fell short of seasonal expectations.

 

The Educational Services and Health Care & Social Assistance sectors lost 900 and 700 jobs, respectively, in June. A portion of the decline in Health Care & Social Assistance can be attributed to a labor dispute.

 

The Government sector fell by 400 in June as all three branches, State (-200), Federal (-100), and Local (-100) reported job losses.

 

Offsetting the June losses were job gains reported among several sectors, notably Other Services (+600) and Construction (+300).

 

Editor's Note: RIDLT issued a correction to their earlier press release to clarify that the job loss occurred since May. The headline has been changed to reflect the correction by RIDLT.