Rhode Island’s economy showed mixed performance across key indicators in the third quarter of 2024, according to the Rhode Island Key Performance Indicators (KPI) Briefing, released today by The Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council (RIPEC).
The Briefing shows that Rhode Island saw robust growth in its labor force participation rate, which grew for the sixth straight quarter in Q3 and is now at 65.2 percent—higher than New England’s rate (65.0 percent) and, by a much larger margin, the U.S. rate (62.7 percent). Rhode Island also experienced an increase in net sales tax receipts—an indicator of aggregate demand—of 2.4 percent (seasonally adjusted) in Q3, while the number of employed Rhode Islander’s rose by 1,200 (0.2 percent).
At the same time, the Ocean State’s unemployment rate ticked up for the fifth straight quarter in Q3 2024, reaching 4.6 percent—higher than the U.S. (4.2 percent) and markedly higher than the region (3.4 percent). Rhode Island non-farm employment (Rhode Island-based jobs) fell by 1,800 quarter-over-quarter in Q3 2024 but was up 5,300 jobs year-over-year.
“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.”
Rhode Island-based employment saw gains in five of nine major industry sectors in Q3 2024, and losses in two sectors, while employment in construction and manufacturing remained essentially unchanged. The government sector experienced the largest nominal employment gains (1,000 job increase) and leisure and hospitality saw the largest losses (3,200 job decrease).
In Q2 2024, Rhode Island’s GDP grew by 2.5 percent over Q1 (annualized), outpacing New England (2.2 percent) but trailing the U.S. (3.0 percent). GDP data from Q3 2024 are not yet available.
“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, President and CEO 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.”
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.
