I am often asked by job seekers why there are so few job opportunities in Rhode Island. It is a difficult question to answer when you consider the state's strategic assets such as outstanding institutions of higher education, geographic location, air, water and highway transportation system, historic sites, world-class medical facilities, access to the ocean and vibrant leisure and hospitality industry. Rhode Island should be adding jobs rather than losing them.

Rhode Island is a natural center for tourism and the marine industries. With Routes 95 and 295 and access to the ocean, Rhode Island should be a distribution center to the New England states. Rhode Island has developed certain employment sectors such as high-tech, financial services and health sciences with some success while doing little to retain small businesses. The small business sector accounts for over 90 percent of the businesses in the state and creates jobs when the environment is friendly to their growth and the owners of the businesses.

Since 2007, it has been difficult if not impossible for many individuals to find a job in the state. Rhode Island's unemployment rate has consistently been among the highest in the New England states for the last three years. Almost every sector of the economy has lost jobs. Many are forced to leave the state to find jobs.

This month's advice column is devoted to answering the question - why aren't there jobs in Rhode Island. There are at least five reasons: the business climate in the state, the lack of attention to small businesses, local and state government budget deficits, a weak education system that is not preparing individuals for tomorrow's jobs and misdirected economic development activities. None of the reasons have to do with the national recession which has only added to Rhode Island's problems.

Prior to 2007, affordable housing and the high cost of health insurance were important considerations in attracting and retaining businesses. In recent times, housing is now more affordable because of a 30 percent decline in the median price of a home since 2008 and small businesses can obtain health insurance at competitive rates.

There are many positive signs that the state in partnership with the business community and educational institutions are working diligently to retain and create jobs. The federal economic stimulus program is also helping the state create jobs for infrastructure projects. These activities will lead to jobs for those who want to stay and work in the state.

There are changes underway to make the state more business-friendly by possibly eliminating the corporate income tax, speeding up government-business processes and revamping the state's personal income tax structure. Small businesses now have access to special federal and state financing programs to hire people and make capital purchases. State and local budget deficits could disappear if the legislature adopts the pension recommendations of the Governor and Legislative Study Commission and government at all levels becomes more disciplined in cutting expenditures. With new leadership in education in a number of systems, there should be more accountability in terms of graduation standards. And, economic development is being reorganized to create jobs.

The challenge now is to create jobs in a recessionary period. Economic forecasts predict that Rhode Island will lose jobs through 2010. There are indications that the national economic situation is improving slowly as more consumers are refinancing their homes. Consumer spending through government support will eventually lead to job creation.

Where will the new jobs be in Rhode Island? First, the construction industry will need both skilled and unskilled workers to work on federal supported programs. Second, the leisure and hospitality industry can benefit from tourism as well as increased consumer spending. Third, jobs will be created in service occupations as a result of the large number of new small business incorporations from a year ago. Fourth, new government jobs will be created as a result of the federal stimulus program. And fifth, high tech jobs in the energy industry in the state could result from the wind farms.

Many of the businesses in the state are operating as lean as they can in order to avoid additional personnel layoffs. As consumer spending increases and business inventories decrease, Rhode Island will have job opportunities again.