Rhode Island’s unemployment rate has increased again, revealing alarming trends across crucial economic indicators, as confirmed by a Wednesday briefing from the Rhode Island Public Expenditure Council and Bryant University. In the second quarter of 2025, the unemployment rate nudged up to 4.9 percent from 4.7 percent recorded in the first quarter. Over the past two years, the unemployment rate has been stagnant or rising. This status has lasted for six quarters in a row, where Rhode Island’s unemployment rate has surpassed that of New England and the U.S. in its entirety.

There has been a severe decline in employment over the past two years. Two years ago, the unemployment rate sat at 2.7 percent, whereas a current labor shortage has seen the rate increase significantly as more people exit the labor force. Based on the quarterly briefing, the number of employed Rhode Island residents dipped once again last quarter, decreasing from approximately 562,000 to 559,000. The state’s labor force participation rate fell for the fourth consecutive quarter, landing at 63.7 percent.

Overall, the non-farm employment or the Rhode Island-based jobs remained consistent from quarter to quarter at around 515,000 jobs. This stability, along with modest consumer demand growth, has helped keep Rhode Island’s economy steady. However, a few alarming trends are appearing, signaling that despite the surface-level stability, the state’s economic momentum is slowing down. Michael DiBiase, RIPEC’s President, and CEO have stated that the released data reveals growing headwinds within Rhode Island’s economy that deserves the attention of both local policymakers and businesses.

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