The job market in Rhode Island seems to be taking one foot forward two steps back. With the Rite-Aid purchase of Brooks, jobs will be lost. This is another example of how a company headquartered in another state affects Rhode Island employment when it comes to higher earning jobs. This month the number of summer hires in the leisure and hospitality sector will be returning to school which will cause a reduction in the total number of employees in the state.

As you may recall, the key sectors of the Rhode Island economy forecasted for growth in 2006 included the health and education sector, business and professional services, financial services, construction and leisure and hospitality. There are now concerns as to whether these sectors will grow during the last four months of the year. The economy is slowing. There are no announcements of additional hiring by Rhode Island's major employers.

The residential housing industry is not as strong as it has been - houses for sale are on the market longer and not getting the asking price. New condominium projects are having trouble finding buyers because of interest rates and the inability of prospective buyers selling their current residence. Builders are hesitant to start developments without pre-selling homes. This may be the beginning of a recession in housing.

There are other sectors of the state, region and national economy that are still strong - consumer spending is strong, industrial production is higher than in past years and unemployment is relatively low. Even with high gasoline and energy prices, consumers are still buying automobiles, furniture and appliances.

In a previous OUTLOOK column, job opportunities in the marine industry were discussed. The business media is now reporting a crisis facing New England fishermen as a result of over fishing, environmental issues such as pollution and government regulations. The Point Judith fishing industry is affected by these factors. This may lead to corporate consolidation of fishing fleets which will reduce the number of independent fishermen. Rhode Island must support the local fishing industry while building a strong marine industry by funding research at the state's institutions of higher education.

High technology industries including the biosciences will take years to develop in Rhode Island before significant numbers of new jobs will be available, and once developed, will face strong competition from some of the neighboring states and foreign countries. Data from various sources show that bioscience employment is geographically dispersed across the 50 states. In 2004, the latest year for which data are available, there were 1.2 million people employed in biosciences in the United States. The average annual wage of bioscience workers was $65,775 in 2004; $26,000 greater than the average private sector annual wage. Most of the employment is found in nineteen states and Puerto Rico. Thirty-seven states and Puerto Rico have a substantial specialization in one or more of the bioscience sectors: agricultural feedstock and chemicals, drugs and pharmaceuticals, medical devices and equipment, and research, testing and medical laboratories. Only one state, New Jersey, has a specialization in all four sectors; Connecticut specializes in three sectors and Massachusetts, New Jersey and Pennsylvania are specialized in at least two industry sectors. The Rhode Island Economic Development Corporation has targeted this industry for growth and has been able to get the state to make investments in facilities and support bioscience entrepreneurs and emerging companies. The results of these efforts should be seen by 2008.