A top forecasting firm says the Rhode Island job market will remain depressed for another half a decade.
Rhode Island won’t finish recovering all the jobs it lost during the Great Recession until sometime in 2018, five years from now, according to the latest analysis by IHS Global Insight reported by The Wall Street Journal.
IHS continues to predict that Rhode Island is one of only three states – along with Michigan and Nevada – where payroll employment will be stuck below pre-recession level until 2018. By contrast, Massachusetts and New York have already reached new employment highs, and Rhode Island is also projected to lag New Hampshire (2014), Vermont (2014), Maine (2016) and Connecticut (2016).
Nonfarm payroll employment in Rhode Island fell from 496,400 in December 2006 to 456,800 in August 2009, a drop of 39,600 or nearly 8%, according to the U.S. Labor Department. Employment totaled 468,100 last month, up by 11,300 from the August 2009 trough – which comes out to an average annual gain of 2,825 jobs since August 2009, suggesting it could take 14 years to recover employment unless the pace speeds up.
• Related: RI regains only 22% of jobs lost in recession as Mass. passes 100% (April 17)