CRANSTON – Rhode Island’s economic recovery continued in May with the monthly unemployment rate dropping three-tenths of a percentage point from April to 2.9%, falling below 3% for the first time in 30 years, the R.I. Department of Labor and Training said on Thursday.
Nonfarm payrolls totaled 496,800 in May, an increase of 900 from the month before and 18,000 year over year. These jobs exclude farming and some government, private and nonprofit workers.
The state’s unemployment rate was 6% in May 2021.
“Today’s jobs report shows that our plans and policies are working for Rhode Islanders and local businesses,” Gov. Daniel J. McKee said. “That’s why we’ve been able to add thousands of jobs and get our unemployment rate to the lowest level it has been in decades … Rhode Island is primed to continue this momentum.”
The number of unemployed Rhode Islanders – classified as residents actively seeking employment – decreased to 16,500 in May, a decline of 1,500 since April and a drop of 83,800 since April 2020, the height of pandemic-related shutdowns.
Employed Rhode Islanders totaled 553,600 in May, an increase of 2,600 from March and up 15,300 year over year.
The state labor force was 570,100 in May, an increase of 1,100 individuals from April but a decrease of 2,500 from May 2021.
The DLT noted that compared with February 2020 – a month before the COVID-19 pandemic hit – the number of unemployed Rhode Island residents is down 4,500 and the number of employed state residents is up 2,800. There are 1,700 fewer state residents participating in the labor force than there were before the start of the pandemic, the DLT said.
Last month, the state’s manufacturing sector gained 100 jobs from April, bringing the total to 40,100; food services and accommodations increased by 200 jobs, bringing the total to 49,300; and the construction sector gained 200 to bring the total to 21,900. The DLT said the administrative and waste services sector led all employment sectors in job growth, adding 500 jobs in May, followed by a gain of 400 jobs in the arts, entertainment and recreation sector. The May job figure of 7,900 in arts, entertainment and recreation represents the highest figure since March 2020.
Seasonally adjusted nonfarm payrolls in Rhode Island by sector in April:
- Health care and social assistance: 80,500, an increase of 200 from April and an increase of 3,000 year over year.
- Government: 63,400, a decrease of 300 from April and up 400 year over year.
- Accommodation and food services: 49,300, an increase of 200 from April and up 4,800 year over year.
- Retail trade: 46,800, a decrease of 300 from April and up 200 year over year.
- Manufacturing: 40,000, a gain of 100 from April and 1,200 year over year. Production workers in the sector earned $24 per hour in May, an increase of 17 cents from April and $2.39 from one year prior.
- Professional and technical services: 29,600, an decrease of 200 from April and 1,800 year over year.
