Projo Biz Blog

Rhode Island's economy is lagging the rest of the nation's in part because its labor market is less educated, a labor economist said at today's economic forum.

Rhode Island's labor force has lagged New England and the nation in its rate of growth in bachelor's degrees awarded from 1996 to 2006, according to data presented by labor economist Paul Harrington, director of the Center for Labor Market Studies at Northeastern University.

Rhode Island's rate of growth in bachelor's degrees during the 10-year period was 10.8 percent, compared with 16.3 percent for New England and 27.3 percent nationally.

"The growth path to the Rhode Island economy is through the post secondary education system,'' Harrington said. "How have we done? Not well."

The number of Rhode Island residents with associate degrees fell 2.7 percent during the last decade (1996-2006) compared with a 31 percent increase nationally, Harrington's data showed.

Meanwhile, less educated residents have seen their earnings decline. For example, the earnings of high school drop outs has fallen, on average, 23.6 percent during the last 25 years.

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