THE JOB OUTLOOK-AUGUST 2006

A national job outlook survey published by the National Association of Colleges and Employers reported that the graduates of the class of 2006 are entering a fairly good job market with employers expecting to increase their college hiring by approximately 14 percent over 2004-2005. The survey also reported that graduating seniors started their job search six months before graduation and received the most help in obtaining a job from their college placement office, friends, faculty, parents, relatives and alumni. Employers favored job candidates with experience gained through co-ops, internships, work-study programs, volunteer work, and part- or full-time jobs. Average starting salaries as reported in the survey were $49,672 for engineers, $40,413 for business majors, $31,429 for communications majors and $31,015 for education majors.

Any significant job growth has not been seen in Rhode Island where the state unemployment figure is still greater than the national unemployment figure. The Rhode Island labor force grew 1.9% from last year. Rhode Island's unemployment rate continues to be higher than the national rate. The sectors of the economy showing the greatest growth in the last three months included construction, financial activities and professional and business services. Manufacturing continued to have the greatest decline.

The total increase in jobs for financial services companies was 1,400 more than a year ago. The largest financial activities companies in the state are Amica Mutual Insurance Company, Bank of America, Citizens Financial Group Inc., Fidelity Investments, Metropolitan Life Insurance Company and Sovereign Bank. These companies hired for selected positions without any significant additions to staff. Manufacturing showed a decline of 2100 jobs during this same period. The major employers in the manufacturing sector in Rhode Island are American Power Conversion, Amgen, Inc., General Dynamics, GTECH Corporation, Hasbro, Inc. and Raytheon Company. These companies have remained relatively stable in number of employees.

Over 56,000 Rhode Islanders work in Massachusetts and more than 11,000 in Connecticut. The number of Massachusetts residents that work in Rhode Island is 31,506 and the number of Connecticut residents that work in Rhode Island is 4,000. This is continuing evidence that Rhode Island is part of a regional economy where job seekers need to look at the neighboring states for employment opportunities.

With general uncertainty about the economy, increasing energy costs and the geo-political factors affecting business, companies are slow to add new jobs. This will change once confidence in the economy improves as a result of lower interest rates and energy costs. All these factors are affecting the New England economy. Rhode Island government is committed to creating jobs by attracting new companies and retaining existing businesses.