RI jobless rate dipped to 11% in May

PROVIDENCE, R.I. (WPRI) - Rhode Island's unemployment rate dipped to 11% in May as more residents jumped into the job market for the first time in two years, the R.I. Department of Labor and Training said Friday.

While economists caution not to read too much into a single month's employment figures, the May report is more positive than others in recent months. DLT spokesman Laura Hart said Rhode Island still has a long way to go.

"I think while it is heartening to see a drop in the unemployment rate, it is one month's data and I would certainly love to see the trend continue," Hart told WPRI.com. "In the big picture it is not a huge change - but it is a change in the correct direction."

The state's unemployment was 11% in May, down from 11.2% in April, the first decrease in four months. However, Rhode Island's jobless rate was the second-highest in the country in April and at 11% remained much higher than Massachusetts' 6% or the U.S. rate of 8.2% in May.

Rhode Island's labor force - the number of residents either working or classified as actively seeking work - inched up by 500 to 556,800 in May, the first increase in two years, and in this case the change was matched by rising employment. That's down from 577,158 back in December 2006.

The number of Rhode Islanders with a job jumped by 1,300 in May to 495,400, the first increase in five months and the largest one-month increase since February 2010. The number of unemployed Rhode Islanders fell by 800 last month to 61,400.

Unemployed Rhode Islanders can currently receive up to 99 weeks of jobless benefits. Rhode Island is one of the last three states that will continue to provide benefits for 99 weeks until September, when the program ends. DLT said an average of 27,046 Rhode Islanders received benefits in May.

A separate survey of employers showed 458,100 workers on nonfarm payrolls in May, a slight decrease of 200 from April, as the loss of 600 construction jobs partly offset a gain of 800 positions in accommodation and food services. That's down from a peak job count of 496,400 in December 2006.

In the case of May, Hart said the changes may be partly attributable to the mild winter throwing off the department's seasonal adjustments because of construction projects and seasonal hospitality work gearing up earlier than expected.

DLT measured employment last month during the week of May 12, prior to 38 Studios' mass layoff of its nearly 300 local workers. Hart said the department has suspended its investigation of Curt Schilling's company's failure to pay its workers because the game firm has now filed for bankruptcy.

Ted Nesi ( tnesi@wpri.com ) covers politics and the economy for WPRI.com and writes the Nesi's Notes blog. Follow him on Twitter: @tednesi