FOR IMMEDIATE RELEASE:
November 21, 2016
Rhode Island loses ground, based on lag in long-term employment security
Providence, RI — Despite October data that showed an end to a two month job-loss skid and a slight improvement in its unemployment rate, Rhode Island actually lost ground and is still mired in 48th place by a broader measurement of overall employment opportunity. This according to the RI Center for Freedom & Prosperity which noted today that relative long-term unemployment security concerns dropped the state’s total score, keeping the Ocean State stuck with the 48th rank nationally in the Center’s October Jobs & Opportunity Index (JOI).
The state’s weak JOI score (which dropped in October to 17.5 on a scale of 0-100 from its September score of 17.9) parallel findings from another national study, the Family Prosperity Index (FPI), where it ranks 43rd overall in “economics” and 44th and last in New England in the sub-category of “entrepreneurship”, which can be largely attributed to an overly-burdensome governmental regulatory regime.
Rhode Island’s poor JOI and FPI rankings are personified by Robert Martinez, a US Navy veteran, who fought a losing battle against oppressive local government regulations and a statewide hostile business climate that has derailed his dream of forging a better quality of life for himself by developing a successful mobile food vendor business.
“The notion that a falling unemployment rate is indicative of improved job prospects and financial security is false,” commented Justin Katz, research director for the Center. “Meaningful long-term work and high-paying jobs that are vital to individual dignity and family self-sufficiency are not in high supply in Rhode Island as compared with other states.”
A more detailed analysis of the October data can be found on The Ocean State Current, the Center’s journalism and blog website.
- 39th on the Job Outlook Factor (measuring optimism that adequate work is available): a drop of 3 spots from last month.
- 39th on the Freedom Factor (measuring the level of work against reliance on welfare programs): no change from last month
- 47th Prosperity Factor (measuring the financial motivation of income versus taxes): no change from last month
The Center’s monthly JOI report is based on state and local tax collection data from a a variety of federal agencies including the U.S. Census and on income data from the Bureau of Economic Analysis (BEA).
Rhode Island has not gained ground on the national JOI metric, remaining – as it has for years – in the bottom five among all states. JOI is a broader and more accurate measure of employment and well-being than the traditionally cited and highly narrow unemployment rate, which has fluctuated more dramatically in recent years for Rhode Island, but which is not an accurate barometer of economic growth or family prosperity.
Supporting the findings of the JOI metric, Rhode Island also ranks 48th in the Family Prosperity Index, the broadest national measure of family well-being.
For the JOI homepage, click here.
For a description of JOI and its three sub-factors, click here.