Continuing August’s trend, Rhode Island’s employment picture continued to darken in September.  The Ocean State was one of just 14 states to lose employment last month, according to the Bureau of Labor Statistics (BLS), and maintained its place in the bottom three states when it comes to unemployment.

Apologists for the status quo might point out that Rhode Island’s unemployment rate decreased by one-tenth of a percent, to 7.6%, its lowest rate since June 2008.  However, the following chart shows the undesirable reason: Rhode Islanders are leaving the labor force faster than they are losing jobs, which decreases the number who are technically counted as “unemployed.”

Adding Massachusetts and Connecticut to the chart shows that Rhode Island’s neighbors were among the majority of states that saw increases in employment last month.  Massachusetts is experiencing the opposite (and more healthy) dynamic from Rhode Island with its unemployment rate.  Employment in the Bay State is on the rise, but the labor force is growing even more quickly, which is increasing its unemployment rate.

Naturally, the fact that RI moved in the wrong direction worsened its condition relative to the rest of the country when it comes to distance from peak employment. Rhode Island returned to the bottom 3.

As is the regular monthly theme of the final chart in this series, the volatility is coming from Rhode Islander employment, while RI-based jobs maintains a steady (but slow) growth.  The variety of differences between these two measures make it impossible to know exactly what makes for the contrast, in any given month.  However, the lighter area likely represents a slow, organic growth of established companies, and its upward trend may be somewhat artificial, with an increase in part-time employment increasing the number of jobs while not making anybody much better off.  Meanwhile, the darker area captures self-starters and the self-employed, who are more likely to be harmed by a sluggish economy and the state government’s unhelpful treatment of businesses and workers.