Jobs in Rhode Island Hurt By Recession
Rhode Island’s high unemployment rate in October of 9.3 percent is an indicator that the recession has been particularly difficult on the state. Jobs in Rhode Island have been suffering as a result. During the course of the month employers did away with around 2,400 positions were cut.
Economists at the New England Economic Partnership expect that the state’s job market will get worse before it gets better. These professionals expect that Rhode Island will lose around 12,000 jobs during 2009 and approximately 3,000 in 2010 as the recession nears its end. As of 2007, 493,000 residents held jobs in the state, but this figure will likely drop to 469,300 before the end of the next year.
The same experts believe that jobs in Rhode Island will be struggle most in manufacturing, trade, transportation and utilities, leisure and hospitality, professional and business services, financial services and construction.
The Partnership’s economist believe that unemployment will rise to 9.5 percent in 2009. By 2010 it will top out somewhere around 10.2 percent. Sadly, they do not expect the jobless rate to drop below 8 percent until sometime after 2012, showing that this recession will take sometime to recover from.
One of the state’s problems comes from the fact that it is a has created an environment that is somewhat unfriendly toward business, according to the Providence Journal. While many areas are cutting taxes and creating incentive programs to entice employers to their states, Rhode Island continues to have high taxes.
Currently, cities and states are competing to draw in new businesses. Since Rhode Island’s government has yet to create their own version of an incentive package they have been unable to keep up. If this is not remedied soon, then large employers in the state may soon be draw away to other markets, which will only cause more jobs to be lost and unemployment to rise even higher.
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