Employment: 2013 on Track to Go Out with a Whimper

About the best that can be said of Rhode Island’s employment situation, with the release of two months of data (owing to the government shutdown) and an unemployment rate of 9.2%, is that the drop hasn’t been as precipitous in the fall as it was in the summer.

As the following chart shows, the Ocean State is on track to end 2013 with a total labor force (those who are employed or looking for work) that is lower than the total number of people employed in January 2007.  In broad strokes, it’s as if Rhode Island’s recovery has consisted of driving people out of the labor force.  If that had not occurred, the unemployment rate would now be 13.2%.

Rhode Island Labor Force and Employment, January 2007 to October 2013

Placing its results alongside those of the Ocean State’s two neighbors shows that the decline continues to be unique. Both Connecticut and Massachusetts have been relatively stagnant, which looks like a positive quality in comparison with Rhode Island.

RI, MA, and CT Labor Force and Employment as a Percentage of Jan 2007 Labor Force, Jan 2007 to Oct 2013

Another milestone facing Rhode Island before the year is out is that it may fall below Michigan to take the title as the state that is farthest from its pre-recession peak employment.  By the numbers, Michigan has been moving up and has reached 90.8% of its peak employment, while Rhode Island has slipped to 91.1%.

United States October 2013 Employment Percentage of Pre-Crisis Peak by State

In keeping with that trend, Rhode Island’s distance from its employment at the beginning of the national recovery continues to sink into the red; until August, it had been in positive territory.

United States Employment Growth by State, February 2010 to October 2013

Disclaimer: The views and opinions expressed in The Ocean State Current, including text, graphics, images, and information are solely those of the authors. They do not purport to reflect the views and opinions of The Current, the RI Center for Freedom & Prosperity, or its members or staff. The Current cannot be held responsible for information posted or provided by third-party sources. Readers are encouraged to fact check any information on this web site with other sources.

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