June unemployment rate creeps up from May, but reflects drop over the year

THE UNEMPLOYMENT RATE fell to 5.5 percent in June from 6 percent in June 2015, but was slightly higher than May's jobless rate of 5.4 percent, the R.I. Department of Labor and Training said Thursday. / COURTESY R.I. DEPARTMENT OF LABOR AND TRAINING
THE UNEMPLOYMENT RATE fell to 5.5 percent in June from 6 percent in June 2015, but was slightly higher than May's jobless rate of 5.4 percent, the R.I. Department of Labor and Training said Thursday. / COURTESY R.I. DEPARTMENT OF LABOR AND TRAINING

PROVIDENCE – Rhode Island’s seasonally adjusted unemployment rate for June was 5.5 percent, an increase of one-tenth of a percentage point from May, according to data released by the R.I. Department of Labor and Training on Thursday.

In the year-over-year comparison, this value represents one half of a percentage point decrease from June 2015’s 6 percent.

Nationally, the unemployment rate last month was 4.9 percent, an increase of two-tenths of a percentage point from May, but a drop from June 2015’s 5.3 percent.

There were 400 more unemployed Rhode Islanders in June than May, for a total of 30,200 people. In the year-over-year comparison there were 3,300 fewer unemployed people.

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In June, 9,800 individuals collected unemployment insurance benefits, up from the 9,074 individuals who collected benefits last year, accounting for 34.3 percent of the total unemployed.

There were 300 more employed Rhode Island residents in June compared with May, for a total of 523,100, an increase of 600 from June 2015.

In addition, the state labor force increased over the month by 800 to 553,300, but was 2,700 less than the value in June 2015. This report ended two consecutive months of job declines resulting in a loss of 3,900 jobs. While the state is down 100 jobs at the mid-point of 2016, in the year-over-year comparison the state has gained 3,600 jobs.

Last month nonfarm payroll jobs in Rhode Island totaled 488,400, an increase of 1,700 from the May estimate. Retail trade also saw growth, adding 800 jobs since last month – pushing the employment level to 48,800, the highest level since October 2008. This sector has 600 more jobs compared with June 2015.

Five hundred jobs were added in the health care and social assistance field in June, which has seen an average growth of 200 jobs in each of the past three months.

Other services also saw an increase of 500 jobs in June, for an employment level of 23,600 – the highest level since March 2005 – and an increase of 600 jobs in the year-over-year comparison.

June saw 400 jobs added to both the information and wholesale trade sectors over the month. The increase seen in the information field was mostly workers returning from a telecommunications strike.

Half of the 600 jobs lost in the manufacturing sector were recouped in June and there were 800 more jobs than in June 2015.

Similarly, 300 jobs were added in the accommodation and food services industry last month, which has averaged an increase of 100 jobs over the first half of 2016 and is up 1,300 workers from June 2015.

For four of the past six months the professional and business services sector added an average of 200 jobs each month and is up 100 jobs as of June, reflecting a 1,900-job increase in the year-over-year comparison.

Construction employment continued its downward trend losing 600 jobs in June, its fourth consecutive drop for a total loss of 2,000 jobs. However, this trend only reflects a loss of 100 jobs year over year.

Five hundred jobs were lost in the educational services sector in June compared with May, and the sector experienced a decrease of 700 jobs from June 2015. In addition, over-the-month declines were witnessed in the arts, entertainment and recreation (-200), financial activities (-200) and transportation and utilities (-100) sectors, yet the government and mining and logging sector remained unchanged.

Manufacturing industry workers’ hourly wage in June was $18.22, up 25 cents from the previous month and 90 cents year-over-year. They worked an average of 39 hours per week last month, nine-tenths of an hour more than May 2016 and the same amount as June 2015.

Gov. Gina M. Raimondo released a statement on the unemployment rate, saying the gain of 1,700 jobs is “welcome news, but we still have significant room for improvement.”
“This week alone, I have seen some of our initiatives at work. I met a young woman who is pursuing a career at Electric Boat. In the coming years, thousands more will join her. We highlighted the upcoming expansion of another local company – Alexion. With so many workers and families still trying to gain their footing in this evolving economy, I will continue to focus on putting people back to work by strengthening our schools, matching people’s skills with employers’ needs, and making it cheaper and easier to do business here,” Raimondo said.

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