Home Economy Economic Activity Underlying issues cloud state’s positive economy in Q4, RIPEC says

Underlying issues cloud state’s positive economy in Q4, RIPEC says

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PBN Staff

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01/26/2024

RPIEC0126 — RHODE ISLAND Island’s economy showed positive results in the fourth quarter of 2023 even though underlying issues remain, 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 positive results in the fourth quarter of 2023 even though underlying issues remain, according to a new report from the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University. The Rhode Island Key Performance Indicators Quarterly briefing, published on Friday, highlights

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PROVIDENCE – Rhode Island’s economy showed positive results in the fourth quarter of 2023 even though underlying issues remain, according to a new report from the Rhode Island Public Expenditure Council and the Center for Global and Regional Economic Studies at Bryant University. The Rhode Island Key Performance Indicators Quarterly briefing, published on Friday, highlights positive results across most key economic indicators, including Rhode Island-based jobs, employed residents, labor force participation rate and net sales tax receipts, an indicator of aggregate demand. The number of nonfarm jobs based in the state increased quarter over quarter but notably remained below pre-pandemic levels, RIPEC said, adding that while the state has recovered 91.2% of jobs lost during the pandemic, both the New England region and the U.S. have surpassed pre-pandemic jobs levels. “The fourth quarter data are largely positive,” said Michael DiBiase, CEO and president of RIPEC. “We saw real growth across most key metrics, including the number of employed Rhode Islanders, which grew by 1,400, and nonfarm employment, which expanded by 2,800 jobs. While the number of employed Rhode Islanders exceeds pre-pandemic levels, there are still 7,800 fewer Rhode Island-based jobs than before the pandemic. “This suggests some level of economic vulnerability, especially considering that New England and the U.S. regained all lost jobs several quarters ago. Rhode Island’s GDP growth continues to lag the region and nation, which also points to underlying issues in the state’s economy,” DiBiase said. Rhode island’s unemployment rate remained at historically low levels and lower than both the U.S. and New England region, despite the rate ticking up to 2.7% in the third quarter and to 2.9% in the fourth quarter, according to the report. Employment growth in the fourth quarter was split across major industry sectors, RIPEC said. Construction experienced a 2% decrease, the steepest decline quarter over quarter of any major industry sector, according to the report. However, along with manufacturing, it remains one of only two sectors with greater employment than before the pandemic. Leisure and hospitality had a 2.6% increase, the highest level of employment growth across the state’s sectors, even though there remain 2,800 fewer jobs in this sector than before the pandemic. Net sales tax receipts increased 1.4% quarter over quarter but increased 4.8% year over year.