Connecticut and Rhode Island have both experienced changes in their job markets. In Connecticut, job openings have increased by 5.5%, reaching a total of 96,000 [98dcc751]. This represents a significant increase compared to pre-pandemic levels, with a 43% rise in job openings. Connecticut is among 23 other states that have seen a rise in job openings, including Rhode Island and Massachusetts [98dcc751]. However, the state's labor participation rate ranks 21st [98dcc751]. On the other hand, Rhode Island's unemployment rate hit a 35-year low in September [7bd0d8cf]. Despite this, a report by the Rhode Island Public Expenditure Council (RIPEC) reveals mixed economic data in the state [7bd0d8cf]. Non-farm employment in Rhode Island has fallen for the second consecutive quarter, with six of the state's nine major industry sectors losing jobs [7bd0d8cf]. However, the number of employed Rhode Islanders has increased, surpassing pre-pandemic levels [7bd0d8cf]. The report also highlights the growing divergence between the number of employed Rhode Islanders and Rhode Island-based jobs, with the state only recovering 88% of the jobs lost during the pandemic [7bd0d8cf]. Despite these challenges, Rhode Island has seen an increase in net sales tax receipts, indicating demand in the economy [7bd0d8cf].
Looking ahead, The Kiplinger Letter forecasts modest employment growth in New England states for 2024. Massachusetts job growth is expected to slow to 0.7% this year, with healthcare and hospitality as the strongest sectors. Maine has experienced the best job growth in the region, attracting retirees and workers in healthcare and hospitality. Connecticut's employment growth is projected to ease to 0.6%, with strength in healthcare, defense, and trade/transportation sectors. New Hampshire is expected to have job growth of 0.6% this year, with the healthcare sector already returning to pre-pandemic levels. Vermont's job growth is forecasted to be 0.4%, lagging behind other New England states. Rhode Island, on the other hand, is expected to have stagnant job growth, but its population has increased slightly. The housing market in Rhode Island remains tight [978b0411].
Despite rapidly increasing house prices, inflation in New England remains among the lowest in the nation, at 2.1 percent compared to 3.2 percent nationally, according to the latest Economic Conditions Report from the Federal Reserve Bank of Boston [4dfe00f5]. Regionally, house prices increased 10.1 percent in the last quarter of 2023, compared to 6.4 percent nationally. Rhode Island recorded the highest appreciation increase at 15 percent. The Boston Fed attributed rapidly increased house prices to 'low housing inventory.' University of Rhode Island economist Len Lardaro agrees that the economy is doing well but questions the housing numbers. The region experienced robust employment growth in February 2024, adding 9,000 jobs during the month. Education and the health services sectors were leaders in job growth. In February 2024, New England's unemployment rate was 3.4 percent, below the national rate of 3.9 percent. The Boston Fed also noted that in March, the Conference Board's Consumer Confidence Index rose slightly from the previous year both in New England and nationwide. Office rents remained stable in the Boston area, while office vacancies rose.