RI job losses slow as recession eases slightly

PAWTUCKET, R.I.—Job losses in Rhode Island appear to be slowing down after a horrendous year of layoffs that left the state with the second-worst unemployment rate in the nation, according to
recently released state statistics.

Unemployment in Rhode Island stood at 12.4 percent in June, trailing only Michigan, which was hard-hit by the collapsing auto industry. Rhode Island’s losses can be partly blamed on declines in manufacturing and small businesses that have dominated the state’s economy.

Although joblessness remains at record highs, the number of new layoffs has dropped considerably. Employers were slashing about 3,000 jobs per month during the last quarter of 2008, so far the worst part of the ongoing recession in Rhode Island. The losses slowed to 2,100 per month during the first quarter, then dropped to 700 during the second quarter, according to the state Department of Labor and Training.

“We’re reaching the bottom,“ said Edward Mazze, an economist and former dean of the School of Business Administration at the University of Rhode Island. “There are not many more people to lay off. I think most businesses have reached their minimal staffing in order to stay in business.“

The rate of layoffs in the worst-hit industries such as manufacturing, retail trade, professional and business services was probably somewhat offset by a need for temporary workers in the seaside-based tourism and hospitality industry, Mazze said.

Even if layoffs slow, Mazze expects Rhode Island will experience a sluggish recovery since the state economy is so heavily influenced by consumer spending. A falling housing market could make it difficult for consumers to easily borrow and spend money.

Those still looking for work have seen mixed results in the last few months.

Sara Pardi, 19, of Barrington went to a state-run job search center in Pawtucket trying to find part-time work. She left a job this winter at a Shaw’s supermarket when she needed to get a tumor removed from her thyroid. She has struggled to find work ever since.

Her fiance was laid off from a Warren plastics firm around the same time and had difficulty landing a new job.

“For three straight months, nothing. No one was even saying, ‘OK, fill out an application.‘ But he just recently got hired at Dunkin’ Donuts,“ Pardi said.

If she finds a job, the couple hopes to get married.

“The economy is actually messing up a lot of people’s lives,“ Pardi said. “We know other couples that want to get married and can’t because they don’t have the money.“