New claims jump - Why This Matters
Eddie
Exxe, Labor & Workers
26,700 Rhode Islanders were counted as unemployed in July,
and the state's jobless rate has climbed nearly two percentage points in a year
while running above New England's for ten straight quarters — meaning a harder
job hunt and thinner leverage for workers here than in neighboring states.
Here's the thing about a 400-job loss in a state with
510,300 payroll jobs: on its own, it's noise. It's eight hundredths of one
percent. If that were the only number in the July employment bulletin, nobody
would write about it.
But it isn't the only number.
The Department of Labor and Training's July figures show
jobs at Rhode Island businesses fell by 400 from June, and the state's
unemployment rate rose to 4.5 percent. Total nonfarm jobs came in at 510,300,
down from a revised June figure of 510,700. Over the year, jobs are still up
6,200, or 1.2 percent. So far, so mixed.
Then look at the unemployment insurance claims.
Initial UI claims averaged 1,559 per week in July. In June,
that average was 825. That is close to a doubling in a single month, and it's
up 109 claims per week from July 2023. New claims are the closest thing the
state has to a real-time signal — people don't file for unemployment because a
statistical model told them to. They file because they just lost a job.
And the year-over-year comparison on the jobless rate is the
number that should stop you. In July 2023, Rhode Island's unemployment rate was
2.7 percent. It is now 4.5 percent. That's a jump of one and eight-tenths
percentage points in twelve months. There were 26,700 Rhode Islanders counted
as unemployed in July, up 1,200 over the month.
Charlestown unemployment is comparatively low: