Rhode Island’s Economy Is Floundering, Finds New Study

Rhode Island’s Economy Is Floundering, Finds New Study

Rhode Island’s economy is floundering —  and dropping, according to a new study.

While Massachusetts ranks third in the United States for best economies, Rhode Island is ranked 45th and fell seven slots from 38th in 2023’s rankings.

The study conducted by WalletHub compared the 50 states and the District of Columbia across three key dimensions: economic activity; economic health; and innovation potential.

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The survey evaluated those dimensions using 28 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest economic performance. 

The data set ranges from GDP growth and the unemployment rate to startup activity and the share of jobs in high-tech industries.

More concerning for Rhode Island is that the data is prior to the failure of the Washington Bridge. Since the disruption to the infrastructure, Rhode Island has seen a significant adverse impact on small businesses. Numerous restaurants have closed, and some high-profile events like the Rhode Island Marathon have been canceled.

Separate from the WalletHub analysis, the Rhode Island Department of Labor and Training reported that the unemployment rate in Rhode Island continues to creep upward. In April, unemployment in Rhode Island rose to 4.1%.

“In order to determine which states are pulling the most weight in moving the U.S. economy forward, WalletHub compared the 50 states and the District of Columbia across 28 key indicators of economic performance and strength,” said the company.  “Our data set ranges from GDP growth and the unemployment rate to startup activity and the share of jobs in high-tech industries.”

Most disturbing for Rhode Island is that it ranks poorly in nearly every measure.

“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable. Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future. The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient,” said WalletHub analyst Cassandra Happe.

Rhode Island v. Massachusetts 

Economic Performance of Massachusetts (1=Best; 25=Avg.):

Overall Rank: 3rd
17th – Exports per Capita
1st – % of Jobs in High-Tech Industries
13th – Annual Median Household Income
1st – % of Fast-Growing Firms
1st – Unemployment Rate

 

Economic Performance of Rhode Island (1=Best; 25=Avg.):

Overall Rank: 45th
40th – Exports per Capita
30th – % of Jobs in High-Tech Industries
43rd – Annual Median Household Income
35th – % of Fast-Growing Firms
31st – Unemployment Rate