Home Economy Economic Activity RIPEC: R.I.’s economy showed weakness despite adding 800 jobs in Q1

RIPEC: R.I.’s economy showed weakness despite adding 800 jobs in Q1

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PBN Staff

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04/24/2025

RIPEC0424 — RHODE ISLAND’S economy showed weakness in several key indicators in the first quarter of 2025 despite adding 800 jobs, the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University concluded in a report released on Thursday.

PROVIDENCE – Rhode Island’s economy showed weakness in the first quarter of 2025 despite adding 800 jobs, the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University concluded in a report released on Thursday. “We saw some cautionary signs last quarter, but the Q1 data provide stronger

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PROVIDENCE – Rhode Island’s economy showed weakness in the first quarter of 2025 despite adding 800 jobs, the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University concluded in a report released on Thursday. “We saw some cautionary signs last quarter, but the Q1 data provide stronger evidence of a weakening economy,” said Michael DiBiase, CEO and president of RIPEC. “It is encouraging that Rhode Island-based jobs continued to grow in Q1, and that GDP grew for the fourth straight quarter in Q4 2024. “However, unemployment increases are no longer attributable to more people being in the labor market, and our unemployment rate has now exceeded both the New England and U.S. rates for five consecutive quarters,” DiBiase said. Five of nine major industry sectors experienced seasonally adjusted gains in the first quarter, according to the report. Leisure and hospitality experienced the highest levels of nominal jobs growth with 500 jobs, followed by manufacturing, trade, transportation and utilities with 400 each. Though Rhode Island-based jobs rose in the first quarter to 5,400 jobs year over year, the number of employed Rhode Islanders decreased by 2,300. The state’s labor force participation rate fell for the third straight quarter as well, to 64.1%. That number trails the New England rate of 65.3% but is better than the national rate of 62.5%. Rhode Island’s unemployment rate rose for the seventh straight quarter to 4.7%, significantly exceeding the New England rate of 3.9% and national mark of 4.1%. The state’s net sales tax receipts, a key indicator of aggregate demand, decreased 2.4% in the first quarter; however, year-over-year, they grew 0.4%. Rhode Island’s gross domestic product grew 1.9% in the fourth quarter, matching New England’s pace but lagging the national number of 2.5%. GDP data for the first quarter was not available. “While it would be an overstatement to attribute the weakening of Rhode Island’s economy in Q1 solely to rising policy uncertainties – including unprecedented shifts in international trade and heightened volatility in both national and global markets – the evolving national policy landscape will continue to put pressure on the economies of both Rhode Island and the broader New England region,” said Edinaldo Tebaldi, professor of economics and vice president of strategy at Bryant.