6 days ago
R.I. unemployment rises again as state's economy shows ‘concerning trends,' RIPEC briefing says
'On the macro scale, we were at historic low unemployment levels when it started to climb,' Justine Oliva, director of policy and research at RIPEC, said in an interview on Wednesday. 'We were at levels that we hadn't seen since 1988 prior to that. And we were also at that time seeing not only an increase in the unemployment rate, but an increase in employment for the first few quarters.
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'That trend has stopped,' she added.
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Two years ago, unemployment in the state was at 2.7 percent – its lowest in decades, according to Oliva. Ongoing labor shortages had left employers struggling to fill jobs.
'It's increased a pretty large amount over that course of time, at the same time that more people are leaving the labor force,' Oliva said.
According to the quarterly briefing, the number of employed Rhode Islanders dipped again last quarter, dropping to 559,000 from approximately 562,000 during the first three months of 2025. The state's labor force participation rate also fell, for the fourth consecutive quarter, to 63.7 percent.
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Notably, the number of Rhode Island-based jobs – or 'non-farm employment' – remained steady from quarter to quarter, at around 515,000 jobs.
'Rhode Island's economy held steady in Q2 2025, with non-farm employment remaining near historic highs and consumer demand showing modest growth,' Edinaldo Tebaldi, professor of economics and vice president of strategy at Bryant University said in a statement.
'However, several concerning trends are emerging,' Tebaldi added. 'The indicators presented in this briefing suggest that, despite surface-level stability, the state's economic momentum is weakening.'
Michael DiBiase, president and CEO of RIPEC, said in a statement that overall, the data reflects 'growing headwinds for Rhode Island's economy and merit attention from Rhode Island policymakers and businesses.'
'While some sectors continue to add jobs and net sales tax receipts indicate some growth in consumer demand, the broader trend in employment and labor force participation suggests that we are entering a period of increased uncertainty,' DiBiase said.
Christopher Gavin can be reached at
