Unemployment Still at 11 Percent
Friday, June 15, 2012
Rhode Island’s unemployment rate was down two-tenths of a point in May, but the state lost 200 jobs during the month, according to figures released by the Department of Labor and Training (DLT).
The state’s unemployment rate now sits at 11 percent. Depending on the figures in California, the Ocean State will continue to have the second or third highest jobless rate in the country. At 11.6 percent, Nevada had the worst unemployment rate in the country.
Nationwide, the unemployment rate is 8.2 percent.GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
There were some bright spots, however. The state’s labor force actually grew for the first time since April 2010 and for the first in five months, the number of employed Rhode Islanders increased.
The state lost about 600 jobs in the construction sector and 500 jobs in the retail sector, but gained 800 in the service industry as well as several hundred in the manufacturing and transportation and utilities sectors.
May saw the collapse of Curt Schilling’s high-profile video game company in the state, which forced several hundred to lose their jobs. Schilling’s 38 Studios, which received a $75 million loan guarantee from the state in 2010, filed for bankruptcy last week several weeks after laying off every single employee.
The latest jobless figures also come on the heels of an announcement that the state would cut 60-70 positions at the DLT in the Unemployment Insurance and Workforce Development divisions.
“While I expect our department to continue working to meet the needs of our customers in the future, I know that the entire DLT team will feel the loss of these dedicated employees for some time to come, DLT director Charles Fogarty said earlier this month.
Still, there is some hope for the Ocean State. On Thursday, the DLT announced it had been awarded a $2.78 million grant to develop and expand innovative strategies to create jobs. The funds are part of a $147 million package that was awarded to 26 recipients.
"The Workforce Innovation Fund was created to cultivate and test innovative approaches to workforce training and encourage the replication of evidence-based practices in the workforce development field," said Secretary of Labor Hilda L. Solis. "Developing new and creative strategies and expanding existing programs we know work will help make the workforce system more effective to unemployed Americans and employers looking for qualified employees."