PROVIDENCE — Rhode Island added 800 in-state jobs in the first quarter of 2025 compared to the previous quarter, but the state economy “showed weakness in several key indicators” as well, according to a new briefing released Thursday by the Rhode Island Public Expenditure Council and Bryant University.
The Rhode Island Key Performance Indicators Quarterly Briefing shows the state added 5,400 jobs compared to the same period last year.
Yet other important economic metrics showed opposite trends: The number of employed Rhode Islanders and the state’s labor force participation rate both continued to drop for the third straight quarter, RIPEC said in a statement.
The number of employed state residents was down by 2,300 in the first quarter. Meanwhile, the labor force participation rate declined slightly to 64.1 percent, the data shows.
And the state’s unemployment rate ticked up to 4.7 percent marking “the seventh straight quarter in which it has either increased or held steady,” according to RIPEC. The rate is also noticeably higher than the overall New England rate at 3.9 percent and the national rate at 4.1 percent.
While there were some “cautionary signs” late last year, the latest data provides “stronger evidence of a weakening economy,” Michael DiBiase, president and CEO of RIPEC, said in a statement.
“It is encouraging that Rhode Island-based jobs continued to grow in Q1, and that GDP grew for the fourth straight quarter in Q4 2024,” DiBiase said. “However, unemployment increases are no longer attributable to more people being in the labor market, and our unemployment rate has now exceeded both the New England and US rates for five consecutive quarters.”
The data also arrives at a trepidatious moment as investors, economists, and experts closely watch how the Trump administration manages its plans to increase tariffs — and how national and global markets will react.
“While it would be an overstatement to attribute the weakening of Rhode Island’s economy in Q1 solely to rising policy uncertainties — including unprecedented shifts in international trade and heightened volatility in both national and global markets — the evolving national policy landscape will continue to put pressure on the economies of both Rhode Island and the broader New England region,” Edinaldo Tebaldi, professor of economics and vice president of strategy at Bryant University, said in a statement.
Christopher Gavin can be reached at christopher.gavin@globe.com.