PROVIDENCE – Rhode Island’s labor market is stable by the numbers, with unemployment below 5% for more than four years, yet for many employers, that stability has not translated into relief.
And while the state remains at near record highs for total jobs and labor force participation, speakers at Providence Business News’ 2026 Workforce Development Summit on Thursday morning at the Providence Marriott Downtown said the challenge has shifted from post-pandemic churn to a more structural constraint: too few workers with the right skills to meet employer demand.
Matthew Weldon, director of the R.I. Department of Labor and Training, said the state continues to perform in the middle of the New England pack across key labor metrics, describing the current environment as predictable, if not robust.
“Stability is not bad,” Weldon said. “When you have predictability, employers can plan. Workers know they have a strong attachment to their jobs. We’re not seeing the kind of sharp decline [in key labor market indicators] that signals something deeper is wrong.”
He cautioned, however, that uncertainty surrounding federal workforce funding could constrain training programs and unemployment insurance administration in the years ahead.
Weldon was one of the participant in the summit's first panel discussion that also included Karl Wadensten, CEO and president of VIBCO Inc.; Rosa Brito, workforce development manager for Brown University Health; and Farouk Rajab, CEO and president of the Rhode Island Hospitality Association and the Rhode Island Hospitality Education Foundation.
For manufacturers such as VIBCO that are trying to grow, low unemployment offers little comfort, Wadensten said.
“In order to grow, we need people,” he said. “Without people, it’s not getting done.”
Wadensten, who's also a board member of the R.I. Commerce Corp., said manufacturers and other employers are struggling to find workers with specific technical skill sets, even as overall job counts remain near historic highs.
In health care, Brito said, turnover has stabilized, but shortages persist in nursing, imaging and behavioral health roles.
To close gaps, Brown Health has expanded academic partnerships and internal training pathways, building talent from within rather than relying solely on external hiring.
Meanwhile, the hospitality sector continues to grapple with pandemic-era workforce losses and shifts toward hybrid work schedules that have reduced weekday foot traffic in business districts.
Rajab said that while modest growth is projected this year, back-of-house and seasonal staffing shortages persist.
Rajab also urged employers to be thoughtful in deploying artificial intelligence tools in hiring, warning that automated screening systems could unintentionally filter out immigrant and entry-level workers who have historically relied on hospitality as a gateway industry.
More broadly, panelists described artificial intelligence as a tool that can accelerate training and improve efficiency, but not replace human judgment, communication and workplace culture.
At the same time, demographics remain a headwind: speakers noted an aging population, limited labor force growth and barriers such as child care and transportation continue to restrict workforce participation, placing greater pressure on employers to engage directly in talent development.
Those participating in the second panel discussion said that alignment between industry and higher education has become more urgent.
Panelists included Katharine Amaral, director of programs and community partnership at Junior Achievement; Aarin B. Clemons, workforce manager Polaris MEP; Rosemary Costigan, president of the Community College of Rhode Island; John Olerio, executive director of the Office of Strategic Initiatives at the University of Rhode Island; Donna Remington, senior director of experiential education and career services at Johnson & Wales University; and Henry Young, assistant provost at New England Institute of Technology.
Costigan said employers increasingly expect industry-recognized credentials and job-ready candidates, prompting institutions to embed certifications and hands-on learning directly into degree programs.
Indeed, Young said employers have little appetite for extended onboarding periods and want graduates who can contribute immediately.
Beyond technical skills, speakers emphasized the need for stronger communication skills, professionalism and earlier exposure to career pathways. Paid internships and experiential learning opportunities were cited as critical recruitment and retention tools, particularly for first-generation and lower-income students.
Low unemployment may signal stability. But without deeper alignment between employers, educators and policymakers, speakers said, stability alone will not be enough to meet Rhode Island’s long-term workforce needs.
