RI Unemployment Rises to 4.6% — Highest in Three Plus Years

RI Unemployment Rises to 4.6% — Highest in Three Plus Years

The Rhode Island unemployment rate increased to 4.6% in January of 2025. It was the highest level since October of 2021.

The January unemployment rate was 4.6 percent, up one-tenth of a percentage point from the December rate. Last year, the rate was 3.9% in January, an increase of more than 17% in a year.

The U.S. unemployment rate was 4.0 percent in January, down one-tenth of a percentage point from December. The U.S. rate was 3.7 percent in January 2024.

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The number of unemployed Rhode Island residents — those residents classified as available for and actively seeking employment — was 27,100, up 300 from December. The number of unemployed residents was up 4,000 over the year.

The number of employed Rhode Island residents was 564,100, down 600 over the month and unchanged over the year.

The Rhode Island labor force totaled 591,100 in January, down 300 over the month but up 3,900 from January 2024.

The labor force participation rate was 64.2 percent in January, unchanged from December, but down from 64.3 in January 2024. Nationally, 62.6 percent of U.S. residents participated in the labor force.

Unemployment Insurance claims* for first-time filers averaged 2,263 in January, up from 1,276 in December. Claims were up an average of 142 a week from January 2024.

The number of total nonfarm jobs in Rhode Island was 515,100 in January, an increase of 600 jobs from the revised December jobs figure of 514,500. Over the year, total nonfarm jobs are up 7,400 or 1.5 percent. Nationally, jobs were up 1.3 percent or 2.0 million from a year ago. The number of private sector jobs in Rhode Island was up 500 in January and up 5,100 from January 2024.

 

January Nonfarm Payroll Data

    •    The total nonfarm job count of 515,100 in January is an all-time high.

    •    The number of jobs in the Construction sector fell by 300 in January, representing the largest monthly decline among all employment sectors.

    •    Rhode Island has not reported a monthly job decline since July 2024.

    •    In December, the monthly jobs report was revised up by 500, from a reported loss of 400 jobs, to a gain of 100 jobs.

    •    The Educational Services sector reported the largest job gain in January, increasing by 900. The Transportation & Utilities and Retail Trade sectors reported gains of 400 and 300 jobs, respectively.