Economy
R.I. unemployment rate climbs to second-worst in nation
09:30 AM EDT on Tuesday, July 21, 2009
Rhode Island’s soaring unemployment rate is the second-worst in the country, behind only Michigan, and by far the highest among the six New England states. Rhode Island’s unemployment rate rose from 12.1 percent in May to 12.4 percent in June, second to Michigan’s 15.2 percent. The national unemployment rate for June was 9.5 percent.
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“Rhode Island really does stand out in comparison to the other New England states,” said Ross Gittell, vice president and forecast manager for the New England Economic Partnership. Gittell noted that all the other states in New England have unemployment rates below the national average, while Rhode Island’s is significantly higher.
The next-highest unemployment rate in the region belongs to Massachusetts, which saw its jobless rate rise from 8.2 percent in May to 8.6 percent in June, 25th-highest in the nation. Right behind Massachusetts was Maine, with an 8.5-percent jobless rate, 26th-highest in the country.
The remaining New England states are Connecticut, with an 8-percent unemployment rate, Vermont, at 7.1 percent, and New Hampshire, at 6.8 percent. In national rankings, Connecticut was 32nd, Vermont 39th, and New Hampshire 42nd.
Vermont was the only New England state that saw unemployment fall between May and June, from 7.4 percent to 7.1 percent. Maine’s jobless rate went from 8.3 percent in May to 8.5 in June and New Hampshire’s rate rose from 6.5 percent to 6.8 percent. The unemployment rate in Connecticut stayed the same.
Gittell said that earlier in the decade, a thriving national economy, particularly the housing boom, hid “fundamental weaknesses” in the Rhode Island economy that are now readily apparent. Gittell cited the state’s inability to transition from disappearing low-tech manufacturing to more technologically sophisticated industry.
Rhode Island, he said, does not have a business-friendly image, and he pointed to the state’s tax structure, lack of skilled workers, and the poor reputation of its state and local politics.
The state has been among the national leaders in unemployment for the past year. In September 2008, Rhode Island led the country with an unemployment rate of 8.8 percent. Last month, Rhode Island was tied for third in the country with South Carolina, trailing Oregon and Michigan, where the imploding auto industry is pushing unemployment higher.
In the nation, 38 states, plus the District of Columbia, registered increases in their unemployment rates between May and June. Five states saw unemployment drop, and seven states had no change.
Rhode Island is one of 15 states and the District of Columbia in the country with an unemployment rate above 10 percent, joining Alabama, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina and Tennessee.
| Jobless rates in New England states | ||
| State | Jobless rate in June | National rank |
| R.I. | 12.4% | 2 |
| Mass. | 8.6 % | 25 |
| Maine | 8.5% | 26 |
| Conn. | 8.0% | 32 |
| Vermont | 7.1% | 39 |
| N.H. | 6.8% | 42 |
| Source: U.S. Bureau of Labor Statistics | ||
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