R.I. unemployment jumps to 9.3%
CRANSTON – Rhode Island’s rising unemployment rate showed no signs of slowing last month, as it climbed 0.5 percentage points to 9.3 percent – the state’s highest level in more than a quarter century, the R.I. Department of Labor and Training (DLT) said today in its October jobs report.
The jobless rate in Michigan – which had fallen in September to lag the Ocean State’s national high (READ MORE) – also surged to an October level of 9.3 percent, The Detroit News reported.
The national unemployment rate, meanwhile, rose 0.4 percent to 6.5 percent, the R.I. DLT said.
Nonfarm payrolls statewide declined to 476,000 – from September’s revised employment level of 478,400 – in its 10th consecutive month of decline, the DLT said (READ MORE). The number of Rhode Islanders on the unemployment rolls last month jumped by 2,700 to 52,900. On a year-over-year basis, that’s an increase of 23,200.
At the same time, the state’s resident employment – the number of Rhode Islanders with jobs anywhere in the country – totaled 517,500 in September, a drop of 5,000 from the previous month. Year-over-year, that number has declined by 30,100.
DLT said the 9.3 percent unemployment rate is the highest since February 1983, when Ronald Reagan was in his first term as president.
Rhode Island’s largest job loss last month was in the government sector, which lost 1,000 state and municipal jobs. Large numbers of state workers have retired in recent months before of changes to retiree and employee benefits as state leaders attempt to reduce governmental expenditures.
A loss of 600 jobs was reported in professional and business services because of job reductions in employment services and janitorial services, the DLT said. Manufacturing and retail trade each lost 500 jobs, while construction lost 400 positions and transportation and utilities lost 300.
Offsetting those losses was a gain of 600 jobs in health care and social assistance, with most of the growth coming in ambulatory health care services, DLT said. Wholesale trade and “other service” each added 200 jobs, while financial activities had a gain of 100 jobs.
Compared with October 2007, the number of jobs on Rhode Island payrolls dropped 14,500, or 3.0 percent, the largest year-over-year loss since January 1992, the DLT said.
The largest year-over-year losses were in manufacturing (-3,200), government (-2,400), professional and business services (-2,200), retail trade (-2,100), financial activities (-1,400), other services (-1,200), and construction (-1,100).
Three sectors experienced year-over-year gains: health care and social assistance saw an increase of 600 jobs, while educational services and information each reported year-over-year increases of 300 and 200 jobs, respectively.
Manufacturing-production workers in Rhode Island earned an average hourly wage of $13.98 last month, up 2 cents from September and up 6 cents from a year ago. The average manufacturing work week in August was 38.4 hours, down 0.4 hours from September and 0.9 hours shorter than a year ago.
Additional information about the Rhode Island labor market is available from the R.I. Department of Labor and Training at www.dlt.ri.gov/lmi.
To learn more about the services, programs and grant opportunities available through the DLT’s Employer Service Unit – or to meet with an employer-service representative – call 1-888-616-JOBS or visit www.dlt.ri.gov/employer.htm.