R.I. jobless rate drops to 7.7% in July, but labor force loses 1,100

THE R.I. DEPARTMENT of Labor and Training said Thursday that Rhode Island's unemployment rate dropped to 7.7 percent in July from June's rate of 7.9 percent. However, the labor force dropped by 1,100 on a month-over-month basis. / COURTESY R.I. DEPARTMENT OF LABOR AND TRAINING
THE R.I. DEPARTMENT of Labor and Training said Thursday that Rhode Island's unemployment rate dropped to 7.7 percent in July from June's rate of 7.9 percent. However, the labor force dropped by 1,100 on a month-over-month basis. / COURTESY R.I. DEPARTMENT OF LABOR AND TRAINING

PROVIDENCE – Rhode Island’s unemployment rate declined again in July to 7.7 percent, a slight drop compared with June but down almost 2 percentage points year over year, according to the R.I. Department of Labor and Training.
The unemployment rate dipped by two-tenths of a percentage point from 7.9 percent in June and dropped 1.9 percentage points compared with July 2013, the DLT reported. The July 2014 figure is the state’s lowest unemployment rate since June 2008.
Between May and June this year, the unemployment rate dropped to 7.9 percent from 8.2 percent.
Despite the drop in July, Rhode Island’s unemployment rate remains 1.5 percentage points higher than the national unemployment rate, which rose by one-tenth of a percent to 6.2 percent in July compared with June. Year over year, the U.S. unemployment rate dropped 1.1 percentage points from 7.3 percent in July 2013, the DLT said.
While the number of unemployed residents in Rhode Island dropped by 1,100 in July, to 43,100 from 44,200 in June, the Rhode Island labor force also dropped by 1,100, falling to 558,500 in July from 559,600 in June. The decline in the state’s unemployment rate can be attributed to fewer Rhode Islanders in the workforce, rather than a significant rise in employment.
Year over year, the labor force increased by 2,900 compared with July 2013.
The decline in the number of unemployed residents in Rhode Island brought unemployment to its lowest level since May 2008 and represents 12 consecutive month-over-month declines, the DLT said.
The number of people collecting unemployment benefits also declined year over year to 12,561 from 13,552. In July, those collecting unemployment benefits accounted for 28 percent of the total unemployed.
Estimated nonfarm payroll in Rhode Island increased by 1,200 jobs, climbing from 476,600 in June to 477,800 in July – the highest employment level since September 2008, when payrolls stood at 478,600.
Year over year, total nonfarm employment increased by 5,600, with job gains in seven sectors: professional and business services, which added 3,700 jobs; financial activities, with 1,200 jobs; arts, entertainment and recreation, with 800 jobs; retail trade, with 700 jobs; construction, with 700 jobs; manufacturing, with 600 jobs; and transportation and utilities, with 200 jobs.
Sectors that saw job declines in July were health care and social assistance, which lost 600 jobs; government, losing 400 jobs; other services, losing 400 jobs; educational services, losing 400 jobs; wholesale trade, losing 300 jobs; and information, losing 200 jobs.
Employment for the mining and logging and accommodation and food services industries remained unchanged, the DLT said.
From June to July, the DLT recorded job gains of 1,400 and 900 in professional and business services and the financial activities sector, respectively. DLT attributed the growth in the financial activities sector to the real estate sector, and growth in the professional and business services sector to gains in administrative and professional and technical services.
Other month-over-month gains were reported in education services (which gained 600 jobs) and government (gaining 400 jobs), while the so-called “other services” sector added 100 jobs. Job gains were offset, however, by losses in manufacturing, accommodation and food services and health care and social assistance; all three segments lost 500 jobs apiece.
Also losing ground were retail, wholesale trade and arts entertainment and recreation, with all three sectors declining by 200 jobs each since June. Transportation and warehousing dropped by 100 jobs, while job counts remained unchanged in construction, information and mining and logging.

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  1. Well there folks…if you go to http://www.bls.gov/lau/stalt.htm (published on July 30th) you will see that, at Level U6, we’re still at FIFTEEN POINT THREE PERCENT (15.3%)…now California and Nevada are TIED for the bottom/last place, with Arizona coming in right behind them and RI next in line….