Projo Biz Blog

The new rankings strengthen arguments that Rhode Island's [soaring joblessness](http://www.projo.com/business/content/RI_JOBS_01-23-09_RJD28BC_v185.4280185.html) reflected its premature descent into recession more than any particular economic vulnerabilities. Housing prices in Rhode Island collapsed earlier than in most real estate markets across the country, triggering a devastating wave of foreclosures and paralysis in the construction sector.

The 4.8 percentage point increase in the state's unemployment rate last year led the nation, according to the [U.S. Department of Labor](http://www.dol.gov/). Only North Carolina, where unemployment grew by 4 percentage points, and Nevada, where it rose by 3.9 percentage points, came close.

Now, many states are catching up. In February, "regional and state unemployment rates were nearly all higher," according to the new report. "Forty-nine states and the District of Columbia recorded over-the-month unemployment rate increases, while all 50 states and the District of Columbia had higher rates than a year earlier."

Still, Rhode Island's [10.5 percent unemployment rate](http://www.projo.com/economy/BZ_JOBLESS_FEBRUARY_03-20-09_IFDO73L_v148.3e64ae4.html) is nothing to brag about. The new report shows Rhode Island [still leading the region](http://newsblog.projo.com/2009/03/ri-still-leads.html), a full 2.5 percentage points ahead of Maine (8 percent), its closest rival for the undesirable distinction. The next worse jobless rate in New England is in Massachusetts (7.8 percent), followed by Connecticut (7.4 percent) and Vermont (7 percent).

In New Hampshire, where there is [no sales tax](http://www.nh.gov/revenue/faq/gti-rev.htm) or personal income tax, businesses have held on to their workers. The jobless is rate is only 5.3 percent.

To learn more about Rhode Island's economic crisis, read recent coverage from The Providence Sunday Journal:

"[Recession claiming more R.I. small businesses](http://www.projo.com/news/content/BZ_COMPANY_EXODUS_03-01-09_2KDCA06_v299.1f7decc.html)," March 5

"[Rhode Island needs to do more to help small businesses](http://www.projo.com/business/content/BZ_JK0308_03-08-09_OPDHJTI_v13.16ed9c5.html)," March 9

"[Lost in Transition: R.I.'s economy has failed to keep with the times](http://www.projo.com/news/content/lost_03-15-09_QMDMFMA_v3.1f7f3cd.html)," March 16

"[Innovators' keys to a new R.I. economy](http://www.projo.com/news/content/ECONOMIC_SOLUTIONS_03-22-09_P2DNH60_v366.2fcdf7d.html)," March 22