Rhode Island's economy continued to decline in July, 2008 following 500 jobs lost in June. Rhode Island is in a recession which may continue well into 2009.

The number of Rhode Islanders employed in June was 529,500. Jobs declined by 11,900 between June 2007 and June 2008 according to the Rhode Island Department of Labor and Training. In looking back to 2007 (where employment data is now finalized), Rhode Island was the only state in New England and one of six states in the United States to have lost jobs and had one of the worst declines in overall economic activity in the region. In June 2008, the state's unemployment rate was 7.5 percent, the highest in the New England states and 2 percent higher than the national rate.

The effects of the number of foreclosures, the credit crunch, the increase in the price of energy and the lack of consumer and business confidence about the state's ability to get out of this dismal situation has caused consumers and businesses to hold back on purchases and hiring decisions. There seems to be little economic leadership from the federal, state and local government to solve our economic problems. There is suspicion that the state budget will be balanced until Election Day followed by a shortfall in revenue and FY2009 budget targets not being met causing tax increases in 2009.

There is no better time than now to take advantage of the state's strategic location to create jobs and increase tax revenues. Rhode Island is easily accessible to over 50 million people. These prospective tourists, a source of tax revenue, live within driving distance. Three Amtrak Train Stations and a modern airport make the Rhode Island market attractive to tourists and businesses. Rhode Island is known nationally and internationally as a hospitality state because of its historic sites, great restaurants, friendly bed and breakfasts, inns and hotels, and beaches. The leisure and hospitality industry creates jobs in other sectors in the state.

Once individuals visit Rhode Island for education, holidays, medical care or a job, they discover the quality of living here. Our nationally and internationally recognized colleges and universities attract tens of thousands of out-of-state students each year as does the state's health care facilities. Although most Rhode Island graduates leave the state to find a job, many return for holidays and some buy vacation homes here later in their careers. When visitors have had a good experience, they talk to others about coming here for a vacation and may persuade some to bring their businesses to Rhode Island.

Here is how you can help economic development by becoming an ambassador for the state: (1) take advantage of what Rhode Island has to offer, travel throughout the state and support Rhode Island businesses, activities and events, (2) make sure your community and its retailers are welcoming visitors, street and store fronts should be clean and inviting, store operating hours should be consistent and parking should be available, (3) support your local chamber of commerce in making the community a "magnet" for tourism and business, (4) remember that visitors add to the local and state economy and should be sought after rather than looked at as an inconvenience, and (5) shop locally so business owners will reinvest in their businesses.

Your involvement will keep businesses in the state, attract new businesses and create job opportunities at all salary levels in employment sectors such as leisure and hospitality, education and health services, professional and business services, information services, construction, financial services and high-tech. Business location decisions are made for many reasons including where management would like to live. The objective should be to make Rhode Island a place where senior executives want to live since this is where they like to vacation.