Jobless rate drops again, at 12% in June

CLICK HERE. / " title="UNEMPLOYMENT CONTINUED ITS FALL in June, dropping three-tenths of a percentage point to 12 percent. For a larger version of this graphic, CLICK HERE. /"/>

PROVIDENCE – Rhode Island’s jobs picture appeared to brighten further last month as the state’s unemployment rate dropped three-tenths of a percentage point to 12 percent, the R.I. Department of Labor and Training said Friday.

The fourth consecutive monthly decline came even though the state shed 800 government jobs in June as the U.S. Census released nearly half the workers it hired a month earlier for the national headcount.

That job loss was offset by the creation of 800 jobs in the private sector, DLT said.

Rhode Island’s jobless rate, which was fourth-highest in the nation in May, has fallen seven-tenths of a percentage point since a high of 12.7 percent between December and February.

The U.S. unemployment rate, meanwhile, retreated two-tenths of percentage point to 9.5 percent in June, while Massachusetts’ rate also declined two-tenths of percentage point to 9 percent.

While the declining unemployment rate is good news, some numbers weren’t exactly encouraging. Rhode Island saw no net growth in jobs for June, after gaining 3,200 jobs a month earlier. The state’s non-farm payrolls remained unchanged at 451,800 in June.

The jobless rate improved in part because the number of unemployed residents – those classified as available for work and actively seeking employment – sank by 1,900 for the month to 69,300. That’s the fifth consecutive monthly decline in the number of unemployed.

Also, the size of the state’s labor force decreased to 576,100 in June, down by 2,800 from May but up by 11,200 from a year earlier.

The average weekly claims for unemployment benefits declined to 37,529 in June, down 2.6 percent – or 1,016 – from May’s average. That figure differs from the total number of unemployed because of eligibility restrictions.

Rhode Island’s largest job gains in June came in the accommodation and food service sector, which picked up 1,500 jobs. The DLT attributed the growth to a later-than-usual hiring of seasonal help.

The retail trade showed signs of life in June as that sector added 400 jobs, the largest monthly gain since May 2009.

Gains were also reported in financial activities; arts, entertainment and recreation; and “other services,” which each grew by 200 jobs. Transportation and utilities added 100 positions for June, while manufacturing, educational services, information and natural resources and mining remained unchanged.

Along with the government sector, professional and business services lost 800 jobs, which DLT said was due to losses in temporary help, business support and consulting services. Health care and social assistance shed 700 positions because of a reduction of ambulatory health care and hospital hiring. Construction and wholesale trade lost 200 and 100 jobs, respectively.

Manufacturing-production workers in Rhode Island earned an average hourly wage of $14.69 in June, down 7 cents from May and up 79 cents from a year earlier.
The state’s average manufacturing work week in January was 38.9 hours, unchanged from May and more than an hour higher than a year ago, DLT said.

Additional information is available at www.dlt.ri.gov..