Labor Market Information - RI Labor Force Brief

Rhode Island Department of Labor and Training
Labor Force Brief – October 2009

The statistical data in the Labor Force Brief are subject to monthly and annual revisions; therefore, the figures in the current edition should not be compared to those in prior versions of this publication.

EXECUTIVE SUMMARY

Our unemployment rate in October 2009 was 12.9%, down one-tenth of a percentage point from the prior month. The October 2009 jobless rate was up 4.1 percentage points from the October 2008 rate of 8.8 percent.

In October 2009, the number of unemployed RI residents dropped by 400 from September to 73,700 (the first over-the-month decline since February 2007). It was 23,700 above the year-ago level.

Job losses continued in October, decreasing by 1,100 from September’s revised employment level (457,700).

Rhode Island showed an annual decline in private sector jobs through September (-5.2%), losing 21,500 jobs between September 2008 and September 2009. Job growth was down 5.0 percent in Vermont, 4.9 percent in Connecticut, 4.0 percent in Massachusetts, 3.5 percent in Maine and 3.1 percent in New Hampshire for the same period. (October data for other states was unavailable. September data are preliminary.)

RI lost 600 private sector jobs in October. Since December 2007 (the start of the national recession) private sector jobs are down 29,300, a decline of 6.9 percent.

The number of RI residents employed in October 2009 decreased by 200 to 496,100 and was down 20,400 from the October 2008 level. For the twenty-eighth straight month, the number of employed was lower than its respective prior year level.

RI MONTHLY JOB CHANGES (seasonally adjusted)

The total job count in Rhode Island decreased by 1,100 from September’s level to 456,600 in October, as six of the ten major industry super sectors showed job losses. On the national level, US payroll employment fell for the twenty-second consecutive month, declining by 190,000 in October.

In Rhode Island, job gains were noted in Construction (+400) and Professional & Business Services (+200). Information and Education & Health Services were unchanged.

In Rhode Island, job losses were felt in Government (-500), Other Services (-400), Trade, Transportation & Utilities (-300), Financial Activities (-200), Leisure & Hospitality (-200) and Manufacturing (-100).

The US economy lost 190,000 jobs in October. Job cutbacks in Trade, Transportation, & Utilities (-66,000); Construction (-62,000); Manufacturing (-61,000); Leisure & Hospitality (-37,000); Other Services (-12,000): Financial Activities (-8,000) and Information (-1,000) overshadowed job gains in Education & Health Services (+45,000) and Professional & Business Services (+18,000). Government was unchanged over the month.

Compared to October 2008, RI jobs were down 20,800 overall, a 4.4 percent decrease. All ten super sectors showed over-the-year job losses: Manufacturing (-4,800); Trade, Transportation & Utilities (-4,000); Construction (-2,500); Professional & Business Services (-2,400); Other Services (-1,500); Leisure & Hospitality (-1,400); Education & Health Services (-1,200) Financial Activities (-1,200); Government (-1,000) and Information (-800).

Through October 2009, Rhode Island had a net loss of 39,800 total jobs from January 2007, the peak in RI employment. Of the super sectors, Manufacturing had the largest loss (-9,700), followed by Trade, Transportation & Utilities (-7,800); Construction (-6,300); Professional & Business Services (-5,500); Financial Activities (-3,300); Government (-3,200); Leisure & Hospitality (-2,100); Other Services (-1,900) and Information (-800).

RI Job Changes by Major Industry Super Sector

Education & Health Services (+800) was the only super sector to report jobs gains since January 2007.

RI’s seasonally adjusted unemployment rate in October decreased by one-tenth of a percent to 12.9 percent. RI’s October unemployment rate was 2.7 percentage points above the US rate (10.2 percent).

RI’s jobless rate in October 2009 decreased one-tenth of a percentage point from the prior month to 12.9 percent, the first over-the-month decline since January 2007. The October rate was up 4.1 percentage points from last October.
In October, RI’s seasonally adjusted jobless rate (12.9%) was 2.7 percentage points above the US rate of 10.2 percent. The US rate increased by 0.4 of a percentage point over the month.

The number of employed RI residents decreased by 200 from September to October 2009, and was down 20,400 from October 2008.

Our labor force (-600) decrease in October is attributed to the decrease in the number of employed (-200) combined with the decrease in the number of unemployed RI residents (-400).

RI's unemployment rate for September 2009 (13.0%) was above the rates for both Massachusetts (9.3%) and Connecticut (8.4%). (October data for MA and CT are not yet available.)

The number of RI residents classified as unemployed decreased by 400 in October to 73,700, the first over-the-month decline since February 2007.

The number of unemployed residents in Rhode Island declined by 400 in October to 73,700, the first over-the-month decrease since February 2007.

For the twenty-eighth straight month, the number of unemployed RI residents was higher than its respective prior year level.

The number of unemployed RI residents was up 23,700 from the October 2008 level.

The decrease in the number of unemployed residents dropped our unemployment rate to 12.9 percent in October 2009.

Our Unemployment Insurance (UI) claims levels for 2009 remained above the 2008 levels, reflecting the continued weakness in the labor market.

	RI Initial Claims for unemployment benefits through the first 45 weeks of 2009 were 28.3 percent above the same period in 2008. They were up 13.3 percent in 2008 from 2007 levels during the same period.
	↑ US Initial Claims were up 51.1 percent over the first 42 weeks of 2009 compared to 2008. They were up 24.0 percent in 2008 compared to the same period in 2007.
	Also, the number of RI Continued Claims – those individuals who are collecting unemployment benefits – was 45.9 percent above 2008 figures through the first 45 weeks of the year. The 2008 levels were up 16.6 percent from 2007 levels during the same period.
	US Continued Claims increased 90.2 percent over the first 42 weeks of 2009 compared to 2008. They were up 23.9 percent in 2008 from 2007.
NOTE: The pattern in RI claims data for the first quarter of 2009 were skewed by the delays in processing UI claims over the winter months. Claims and payments are not counted until they are entered into the system, so the increases shown for the first quarter of 2009 are misleading.

The number of Final Payments for those on the regular UI program was up 78.0 percent during the first 45 weeks of 2009 when compared to the same period in 2008. It was up 34.8 percent in 2008 compared to the same period in 2007.

EUC & EB - Since the onset of UI benefits extensions, 656,269 payments have been issued under the federal extension (EUC-08) and 106,603 payments have been issued under the federal-state extension (EB).

RI Weekly Final Payments

RI's Insured Unemployment Rate of 4.13 percent (the number of individuals collecting as a percentage of covered employment) for the first 44 weeks of 2009 was above our 2007 and 2008 levels.

RI’s Insured Unemployment Rate was 53.53 percent above the prior two-year average in the last week of October.

RI's 13-Week Average Insured Unemployment Rate

OTHER LOCAL ECONOMIC ITEMS IN THE NEWS

Stop & Shop opened its newest location in East Providence in October. The new store will employ 173 workers. (Providence Business News, 10/21/09)

FGX International Holdings, a designer and marketer of nonprescription eyewear, will lay off more than half their California workers and moving their jobs in Smithfield. (Providence Business News, 11/4/09)

United Natural Foodsrecently completed its move to its new headquarters in Providence. The new facility brought 181 jobs to Rhode Island. (Providence Business News, 10/12-18/09)

Kearflex Engineering, a Warwick manufacturer of cabin pressure systems and other aviation products, recently added a 6,000 square foot expansion to its facility. Hiring of additional employees is expected in the future. (NBC 10 News, 10/13/09)

CVS Caremark plans to move its MinuteClinic headquarters from Minneapolis to RI next year. It was unclear if CVS will be adding new jobs in Woonsocket due to the move. (Providence Business News, 11/4/09)

Capco Steel in Providence is calling back employees who were laid off in the past six months and seeks to add 50 more employees to its workforce after landing several major projects in New York. (Providence Journal, 10/22/09)

Blue Cross recently held a job fair looking for nurse case managers. (Providence Journal, 10/22/09)

Brown University is offering incentives to 260 non-faculty employees who choose to retire by June 30, 2010. The incentives are intended to lower personnel costs by shrinking the university’s payroll and help shrink a projected $30 million budget deficit. (Providence Business News, 11/4/09)

Struever Brothers Eccles & Rouse, based in Baltimore, recently halted its work on its largest RI project in Providence. Combined with other stopped projects, the company has shed 36 of its 40 Providence-based employees. (Providence Journal, 10/28/09)