Rhode Island Losing Young Workers

Rhode Island Losing Young Workers

From 2004 to 2009, the number of workers aged 25 to 44 dropped from 300,600 to 274,200, according to Edinaldo Tebaldi, an economics professor at Bryant University.

“That’s a cause of concern. It’s the group of people who are most likely to bring new ideas, to start new businesses,” Tebaldi told GoLocalProv. “They help keep the economy alive.”

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Does RI Face a ‘Demographic Crisis’?

Tebaldi said the emigration of young workers was a problem, but he did not go as far as saying that Rhode Island is facing a demographic crisis, as one national Web site, www.businessinsider.com, recently claimed. “We are going through demographic change, but we don’t have a demographic crisis in Rhode Island,” Tebaldi said.

Business Insider ranks the Ocean State as eighth among 15 states headed for demographic disaster—due to a thinning of young workers and the swelling of the senior population. By 2030, the state will have 446 seniors for every 1,000 workers and only 56 births for every 1,000 fertile women a year.

From 2004 to 2009, workers aged 45 to 63 did increase from 263,000 to 286,300, but the senior population, aged 65 and older, remained roughly the same, at about 149,000 residents, according to Tebaldi.

Why Younger Workers Are Leaving

The departure of the younger workers reflects the lack of job opportunities, according to Tebaldi. “We are not competitive when it comes to taxes, regulation, and infrastructure,” he said. “Think about how businesses make a decision about locating. They look at taxes, regulation, and infrastructure.”

But, Tebaldi added, several reforms passed this year could change that. In particular, he said a cut in the top income tax rate, from 9.9 to 5.99 percent would make the state more competitive. The General Assembly also recently took steps to make the process for following state regulations more efficient.

“Moving forward I think the state leadership has understood they need to make these changes,” Tebaldi said.