Rhode Island’s economy experienced strong growth in several key economic indicators in the fourth quarter of 2024, although there were some signs of weakening, according to the Rhode Island Key Performance Indicators (KPI) Quarterly Briefing, released today by The Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council (RIPEC).
Significant findings from the Briefing include:
- Non-farm employment, or Rhode Island-based jobs, grew by 3,900 jobs (0.8 percent) in Q4, and by 7,400 jobs (1.5 percent) year-over-year, a record high.
- After three consecutive quarters of growth, and hitting a record high in Q3, the number of employed Rhode Islanders fell by 2,700 jobs (0.5 percent) in Q4 2024.
- After six consecutive quarters of growth, Rhode Island’s labor force participation rate dropped to 64.8 percent in Q4.
- Rhode Island’s unemployment rate held steady at 4.6 percent in Q4 after five quarters of increase. It remained low relative to historical levels. but exceeded the U.S. rate of 4.1 percent and—by a much wider margin—the regional rate of 3.5 percent.
- Net sales tax receipts, a key indicator of aggregate demand, remained virtually unchanged in Q4 2024, with a slight decrease of 0.2 percent (seasonally adjusted). Year-over-year, however, net sales tax receipts grew by 2.9 percent.
“The fourth quarter of 2024 represents a continuation of primarily positive quarterly results,” said Michael DiBiase, President and CEO of RIPEC. “We added a significant number of jobs, and more Rhode Islanders are working compared to last year. Our recent GDP growth has also been impressive given that Rhode Island has historically lagged the region and nation in this measure. At the same time, we are seeing some cautionary signs, with a dip in labor force participation this quarter. We are also watching the unemployment rate—which has now been higher than both the New England and U.S. rates for the last four quarters.”
Rhode Island’s gross domestic product (GDP) for Q3 2024 grew by 3.6 percent (annualized), an increase that exceeded both the New England region (2.9 percent) and the U.S. (3.1 percent) for the third straight quarter. GDP data from Q4 2024 are not yet available.
Rhode Island-based employment (seasonally adjusted) experienced gains in six of nine major industry sectors in Q4 2024, with the manufacturing, construction, and education and health services sectors experiencing small losses. Leisure and hospitality experienced the largest job gains among sectors in Q4, picking up 2,300 jobs quarter-over-quarter (4.2 percent), but having shed jobs in the previous two quarters, was Rhode Island’s only industry sector to have fewer jobs year-over-year.
Edinaldo Tebaldi, Professor of Economics and VP of Strategy at Bryant, remarked, “in 2024, Rhode Island saw strong performance across multiple industry sectors, with education and health services reaching historical levels of employment.” “This sector, the largest in the state, remained a significant contributor to overall employment and economic activity growth, while industries such as trade, transportation, and utilities, and professional services also experienced notable gains. While some sectors faced slight declines, Rhode Island’s economy continues to show resilience, with substantial year-over-year job growth in its largest and most relevant sectors.”
The Briefing is available here. The data set used to create the Briefing is available here. Past editions of the Briefing can be found here.
