Rhode Island-based Jobs Rose by 600 from December; January Unemployment Rate increases to 4.6 Percent

CRANSTON, R.I. – Jobs at Rhode Island businesses rose by 600 in January as the state’s unemployment rate increased to 4.6 percent. Over the year, jobs were up 7,400 from January 2024, and the unemployment rate was up seven-tenths of a percentage point.

Rhode Island’s Labor Force

The January unemployment rate was 4.6 percent, up one-tenth of a

percentage point from the December rate. Last year, the rate was 3.9 percent in January.

The U.S. unemployment rate was 4.0 percent in January, down one-tenth of a percentage point from December. The U.S. rate was 3.7 percent in January 2024.

The number of unemployed Rhode Island residents — those residents classified as available for and actively seeking employment — was 27,100, up 300 from December. The number of unemployed residents was up 4,000 over the year.

The number of employed Rhode Island residents was 564,100, down 600 over the month and unchanged over the year.

The Rhode Island labor force totaled 591,100 in January, down 300 over the month but up 3,900 from January 2024.

The labor force participation rate was 64.2 percent in January, unchanged from December, but down from 64.3 in January 2024. Nationally, 62.6 percent of U.S. residents participated in the labor force.

Unemployment Insurance claims* for first-time filers averaged 2,263 in January, up from 1,276 in December. Claims were up an average of 142 a week from January 2024.

Rhode Island-based Jobs

The number of total nonfarm jobs in Rhode Island was 515,100 in January, an increase of 600 jobs from the revised December jobs figure of 514,500. Over the year, total nonfarm jobs are up 7,400 or 1.5 percent.

Nationally, jobs were up 1.3 percent or 2.0 million from a year ago. The number of private sector jobs in Rhode Island was up 500 in January and up 5,100 from January 2024.

January Nonfarm Payroll Notes…

• The total nonfarm job count of 515,100 in January is an all-time high.
• In the past three months, the local economy has added 1,200 jobs, an average of 400 jobs per month.
• Rhode Island has not reported a monthly job decline since July 2024.
• In December, the monthly jobs report was revised up by 500, from a reported loss of 400 jobs, to a gain of 100 jobs.
• The Educational Services sector reported the largest job gain in January, increasing by 900. The Transportation & Utilities and Retail Trade sectors reported gains of 400 and 300 jobs, respectively.
• The number of jobs in the Construction sector fell by 300 in January, representing the largest monthly decline among all employment sectors.

Manufacturing Hours and Earnings

In January, production workers in the Manufacturing sector earned $25.83 per hour, up thirty-one cents from December but down thirty-two cents from January 2024.

Manufacturing employees worked an average of 40.1 hours per week in January, down four-tenths of an hour over the month and down one-tenth of an hour from a year ago.

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*The average number of verified initial claims filed during the week includes the 12th of the month and the previous three weeks. The Department of Labor and Training is scheduled to release the February 2025 labor force figures and job counts at 10:00 a.m. on Thursday, March 27, 2025.