Most Devastating Number: More RI Workers Have Filed for Jobless Benefits Than Haven’t
Saturday, May 02, 2020
More Rhode Island workers have filed for state and federal jobless benefits than have not.
The numbers from the Department of Labor and Training unveil that more Rhode Islanders have now filed for unemployment insurance, temporary disability insurance and “gig economy” benefits than are working.
The total number that has filed now stands at 270,541.
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The number of workers impacted comprises more than half of the total workforce in Rhode Island.
Rhode Island was especially hard hit as so many Rhode Islanders work in hospitality and retail -- two industries nearly completely shuttered during the pandemic.
"What about Rhode Island recovering by the end of 2020? The industries most affected by the COVID crisis are sadly among the most important in Rhode Island: tourism, hospitality and travel," said URI Economist Len Lardaro.
"Not only have these been severely hurt, with future restrictions on numbers of persons allowed publicly and changes in personal preferences for travel and tourism, these will recover far more slowly than most now believe," he added.
Here are the numbers:
According to DLT for the month prior to the full hit of the pandemic - the number of unemployed Rhode Island residents — those residents classified as available for and actively seeking employment — was 26,300, up 7,500 from February.
Over the year, the number of unemployed residents increased by 6,200. The number of employed Rhode Island residents was 540,300, up 500 from February. Over the year, the number of employed Rhode Island residents was up 6,000 from March 2019 (534,300).
Breakdown:
- 26,300 who were on unemployment going into the pandemic
- UI 199,462 (DLT researchers estimate that after deduplicating) that number is presently 182,000
- PUA (Gig workers) 42,368
- TDI 19,873
Total: 270,541
The total RI workforce was 540,300.
All of these numbers are records in Rhode Island's history. But, this does not mean that the unemployment rate has exceeded or is even approaching 50%. The unemployment rate is a survey and the data does not include those who are on partial furlough -- and thus collecting unemployment but still working or those receiving TDI who are still classified as working.
Raimondo Says Aid Need to Impacted Industries
"The Governor is interested in jump-starting the economy as soon as is safely possible. She’s spent her entire time in office getting Rhode Islanders back to work, and it weighs on her every day that thousands have lost their jobs during this crisis," said Raimondo's spokesperson Josh Block.
"She’s looking at ways to use the federal stimulus money to support some of the hardest-hit industries, such as those in the hospitality sector, and increased education and job training programs will be critical to helping everyone get back on their feet. That will be another priority as we look for how to most effectively use the federal funding to support Rhode Islanders," added Block.
Lardaro is less optimistic that certain industries will ever recover.
"A crowded beach later this year (if at all), will resemble past crowds on bad-weather days. Even more disturbing, a number of restaurants and small businesses will not survive this crisis. So, the 'upside' possibilities for Rhode Island are well below what they once were. Add to this fiscal realities: in a contractionary period such as this, tax revenues fall (even without the delay to a due date in July) and entitlement spending rises, both of which produce large deficits," said Lardaro.
"Balancing the state budget requires actions that will have the effect of further slowing our rate of growth, making things even worse. Our heavy reliance on gambling revenue will also continue to be a problem. Fiscal problems will therefore be with us for quite some time, and our upside will be more limited than usual, while our downside is also quite worrisome," added Lardaro.
