PROVIDENCE, RI – Despite positive consumer demand, several of Rhode Island’s key economic indicators weakened in the first quarter of 2026, according to the Rhode Island Key Performance Indicators (KPI) Quarterly Briefing released today by the Center for Global and Regional Economic Studies at Bryant University and the Rhode Island Public Expenditure Council (RIPEC).
Employment—reflecting the number of employed Rhode Islanders—fell to its lowest level since Q1 2023 and declined for a third consecutive quarter. Year over year, resident employment was down 6,100 jobs (1.1%).
Similarly, Rhode Island’s unemployment rate increased from 4.4% to 4.6% in Q1 2026, reaching its highest level since Q3 2021 and exceeding New England and the U.S. (both 4.3%). Rhode Island’s unemployment rate has now exceeded New England’s for ten consecutive quarters.
Rhode Island’s labor force participation rate also continued to decline, falling from 63.8% to 63.5% in Q1 2026 and marking seven consecutive quarters of decline. Labor force participation also declined regionally and nationally during this period, though less sharply.
In Q4 2025, the most recent quarter for which data are available, Rhode Island’s GDP declined at an annualized rate of 0.4%, compared with growth of 0.9% in New England and 0.5% nationally.
However, net sales tax receipts, a key indicator of aggregate demand, showed strong year-over-year growth, increasing 4.1% (seasonally adjusted) and rising 0.5% quarter over quarter.
Non-farm employment—jobs located in Rhode Island—also posted modest quarterly growth, up 800 jobs (0.1%). However, Rhode Island-based employment was down year over year by 6,100 jobs (-0.3%).
Education and health services—Rhode Island’s largest industry sector—posted the largest gains, adding 1,400 jobs, while manufacturing added 200. Job growth was nearly flat in professional and business services and leisure and hospitality, with each adding 100 jobs. Remaining sectors lost jobs. Declines were modest in financial services, government, and information services, each of which shed 200 jobs, and more pronounced in trade, transportation, and utilities, which lost 500 jobs.
The data set used to create the Briefing is available here.
