PROVIDENCE, RI – Rhode Island’s economy experienced mixed performance in the fourth quarter of 2025, according to the Rhode Island Key Performance Indicators (KPI) Quarterly Briefing, released by the Center for Global and Regional Economic Studies at Bryant University and RIPEC.
Employment—reflecting the number of employed Rhode Islanders—continued a positive trajectory for a second consecutive quarter, with the addition of 3,800 jobs (0.7% increase). Similarly, Rhode Island’s unemployment rate declined for the second straight quarter in Q4, falling from 4.6% to 4.3% after nine quarters of either increase or no change. While still slightly above New England’s rate (4.2%), Q4 marked the first time in seven consecutive quarters that the Ocean State’s rate was lower than the U.S. rate (4.5%).
Rhode Island’s labor force participation rate remained essentially unchanged for the third straight quarter—edging up from 63.7% in Q3 to 63.8% in Q4—but remained below its Q4 2024 rate of 64.3%.
In Q3—the most recent quarter for which data are available—the Ocean State’s GDP expanded at a robust annualized rate of 4.4%, matching the U.S. (4.4%) and slightly outpacing New England (4.2%). However, net sales tax receipts declined by 0.6% in Q4, suggesting underlying weaknesses in aggregate demand.
Non-farm employment, jobs that are based in Rhode Island, also declined, falling by 600 (-0.1%) quarter-over-quarter and down by 1,600 jobs from a record level set in Q1 2025. This decline was driven primarily by losses in two major industry sectors: the trade, transportation, and utilities sector and professional and business services sector, which each shed 1,200 jobs, while government declined by 300 jobs. On the other side of the ledger, education and health services—Rhode Island’s largest sector—added 1,600 jobs, while leisure and hospitality added 800 jobs. Job growth was flat in manufacturing (no change) and virtually flat in financial services (+100), construction (+100), and information services (-100).
As a result of the federal government shutdown, Q4 data on labor force participation, resident employment, and unemployment reflect November and December only; the U.S. Bureau of Labor Statistics determined not to release October data for these measures.
The data set used to create the Briefing is available here.
