Home Industries Business Services RIPEC: R.I. economy shows mixed performance in Q3

RIPEC: R.I. economy shows mixed performance in Q3

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PBN Staff

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10/30/2024

Screenshot — RHODE ISLAND'S economy showed mixed results across key economic indicators in the third quarter, according to a report from the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University.

PROVIDENCE – Rhode Island’s economy showed mixed results across key economic indicators in the third quarter, according to a report from the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University. “In Q3 2024, Rhode Island’s economy exhibited both resilience and emerging challenges,” said Edinaldo Tebaldi, vice president of strategy

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PROVIDENCE – Rhode Island’s economy showed mixed results across key economic indicators in the third quarter, according to a report from the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University. “In Q3 2024, Rhode Island’s economy exhibited both resilience and emerging challenges,” said Edinaldo Tebaldi, vice president of strategy and institutional effectiveness and professor of economics at Bryant University. “Labor force participation continued its upward trend, reaching a nine-year high and signaling a strengthened workforce foundation. Employment also grew, accompanied by rising consumer demand as reflected in increased sales tax receipts. "However, the rise in unemployment for the fifth consecutive quarter and a slight decline in non-farm jobs highlight areas of concern within the labor market. These indicators suggest that while Rhode Island’s economy has potential for continued growth, labor market dynamics and a gradually increasing unemployment rate will require strategic attention to fully leverage the state’s economic momentum,” Tebaldi said. Rhode Island saw robust growth in its labor force participation rate, which grew for the sixth straight quarter in the third quarter of 2024 and is now at 65.2% – higher than New England’s average rate of 65% and, by a much larger margin, the U.S. rate of 62.7%, according to the report. Rhode Island also experienced an increase in net sales tax receipts – an indicator of aggregate demand – of 2.4% [seasonally adjusted] in the third quarter, while the number of employed Rhode Islander’s rose 0.2%. The state’s unemployment rate inched up for the fifth straight quarter between July 1 and Sept. 30, according to the report, reaching 4.6% – higher than the U.S. rate of 4.2% and higher than the New England region at 3.4%. Rhode Island nonfarm employment fell by 1,800 quarter-over-quarter but was up 5,300 jobs year-over-year. “The third-quarter data reveal more positive than negative indicators – particularly with respect to the continued growth in labor force participation, as well as increases in employment and net sales tax receipts,” said Michael DiBiase, CEO and president of RIPEC. “There are warning signs, however. Employment continues to grow but it has not kept pace with increases in the labor force, reflecting the continued rise in the number of unemployed Rhode Islanders – up 2,100 this quarter and 10,300 year-over-year. The number of home-grown jobs also took a dip in Q3.” Rhode Island-based employment saw gains in five of nine major industry sectors in the third quarter of 2024: construction, educational and health services, financial services, government, information services, manufacturing, trade, transportation and utilities. The business services and leisure and hospitality sectors saw losses in the third quarter while employment in construction and manufacturing remained essentially unchanged. Rhode Island’s gross domestic product grew 2.5% from in the first quarter of 2024 to the second quarter of 2024, outpacing New England’s rate of 2.2% but trailing the U.S. rate of 3%. GDP data from Q3 2024 are not yet available.