PROVIDENCE — The number of unemployed residents in Rhode Island went up in January as the state’s jobless rate rose, the state’s Department of Labor and Training said on Thursday.
The number of Rhode Islanders who are actively looking for and available to work rose to 27,100 in January – that’s up 300 compared to December 2024. Year over year, 4,000 more people were looking for work in January compared to January 2024.
Businesses did add jobs for the month, the labor department said, hiring 600 more people in January compared to the prior month. On a yearly basis, recruitment was up by 7,400 roles, a 1.5 percent increase. December’s numbers were revised upward by 500 jobs, meaning the 400 job losses previously reported for the month are now recorded as a gain of 100 positions.
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“In the past three months, the local economy has added 1,200 jobs, an average of 400 jobs per month,” the labor department said in a statement. “Rhode Island has not reported a monthly job decline since July 2024.”
Despite adding jobs, the unemployment rate ticked up by one-10th of a percentage point in January from the prior month to 4.6 percent, the labor department said, the highest level since October 2021. A year ago, the rate was at 3.9 percent.
Matthew Weldon, director of Rhode Island’s labor department, said the rate has been steady at 4.5 percent over the last five months. And while the number of unemployed Rhode Islanders has increased on a yearly basis, the figures for those who are employed have been steady over the same time period.
“This indicates that the main reason for the increase in the [unemployment] rate is people entering the labor force and not people losing their jobs,” he said.
Meanwhile, first-time applicants for unemployment claims nearly doubled in a month, averaging 2,260 in January, compared to 1,276 in December.
“The increase in ... claims is due to normal seasonal layoffs that occur this time of year — school closings and seasonal layoffs in construction and landscaping,” Weldon said.
The rise in the jobless rate in Rhode Island comes amid a cooling labor market in New England, where job openings have declined and layoffs are creeping up. Economists say the jobs market is less dynamic than it was a few years ago, as fewer people are leaving their jobs, limiting the number of vacancies available for new applicants.
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In January, the number of Rhode Islanders with jobs decreased by 600 people, to 564,100. The state’s labor force also declined by 300 people to a little over 591,000, though it was up 3,900 compared to the same time a year ago.
The education sector led the hiring in the state in January, adding 900 jobs, followed by transportation, which hired 400 new people, and the retail segment of the economy, which recruited 300 additional workers.
The construction sector recorded the highest job drop of all the sectors, losing 300 jobs in January.
Omar Mohammed can be reached at omar.mohammed@globe.com. Follow him on Twitter (X) @shurufu.