Unemployment Drops, but RI Lost Jobs in September
Friday, October 21, 2011
Rhode Island’s unemployment rate dropped a tenth of a point, but the state lost more jobs in September, raising concerns that the slowing economy could be fully stalled at this point.
Unemployment Rate Drops
Rhode Island’s unemployment rate has dropped to 10.5 percent according to the RI Department of Labor and Training for the month of September. This is down one-tenth of a percentage point from the previous month and down one full percentage point from September 2010.
The National unemployment rate remains 9.1 percent this September, unchanged from the previous month and down five-tenths of a percentage point from September 2010.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe number of unemployed RI residents decreased for the 18th consecutive month. The number dropped by 800 over the August figures, falling to 58,800 in September. Over the year, the number of unemployed RI residents dropped by 7,600.
Employment Fell
RI-based jobs have fallen for the second consecutive month. The number of employed RI residents decreased over the August figures, totaling 501,500 in September. The number of employed RI residents has dropped 8,800 over the past year.
The average weekly claim load for RI Unemployment Insurance benefits in September was 29,540, down 8.2% from the August average of 32,187, and down 12.9% from the September 2010 average.
The RI labor force totaled 560,400 in September 2011, down 1,000 from August and down 16,300 from September 2010 estimates. The over-the-month decrease in the number of unemployed residents, combined with the decrease in the number of employed residents, caused the September labor force to drop to its lowest level since May 2005.
Estimated nonfarm payroll in Rhode Island reflected a loss of 1,700 jobs from the August employment estimate of 461,500, following a loss of 5,700 jobs in July. Despite these two consecutive months of employment losses, RI-based jobs have increased by 3,000 from January to September of this year.
Where employment fell
Educational Services, Other Services and Government all experienced sizeable employment declines over the month. The Educational Services sector lost 1,200 jobs due, in part, to employment drops at private colleges and schools. The Other Services sector reported a decline of 800 jobs, with greater than normal losses from civic and social organization summer programs and with sizable losses in the area of auto repair and maintenance. Government employment was down 800 over the month as all three branches, federal, state and local government reported declines.
Smaller employment losses in September were reported in the Retail Trade (-500), Health Care & Social Assistance (-400) and Professional & Business Services (-200) sectors. Retail Trade losses are due, in part, to drops in auto-related industries and clothing and accessory stores, while Health Care & Social Assistance losses are due in part to drops in the hospital and social assistance subsectors.
Government employment was down 1,700 from September 2010 to September 2011. Also reporting over-the year job losses were Educational Services (-1,000), Financial Activities (-800), Construction (-500), Arts, Entertainment & Recreation (-200) and Transportation & Utilities (-200). Information and Natural Resources & Mining employment remained even over the year.
Where employment rose or remained
Employment remained unchanged from September 2010, as job gains reported in seven economic sectors were offset by losses reported elsewhere. Over-the-year job gains were reported in Retail Trade (+1,600), Accommodation & Food Services (+1,000), Wholesale Trade (+600), Manufacturing (+600), Professional & Business Services (+400), Other Services (+100) and Health Care & Social Assistance (+100).
Notable over-the-month gains occurred in the Accommodation & Food Services sector, which gained 1,000 jobs due to a change in seasonal hiring patterns, and the Information sector, which registered an uptick of 800 jobs, due to the end of a telecommunications strike. The Construction and Manufacturing sectors each added 200 workers in September, while employment within the Arts, Entertainment, & Recreation, Financial Activities, Transportation & Warehousing, Wholesale Trade and Natural Resources & Mining sectors remained even.
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