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Unemployment Rate in Rhode Island Will Remain High into 2010

Posted on | November 9, 2009 | No Comments

Unemployment in Rhode Island is said to rise to 13.8% by this time next year. Some states are clearly struggling but it appears as if Rhode Island is having the worst luck.  Despite all the unemployment benefit extensions, and fist time home buyer tax credit extensions some states are still not managing to make ends meet, Rhode Island being one of these primary states.

As of Sept 9th Rode Island only had approximately 500,000 employees with jobs. The mass deficit began for Rhode Island when their budget didn’t pass due to a lack of saving in the prior year. Follow the decline of the budget; a lack of tax collection took place putting Rode Island further into debt.

As unemployment continues to rise there is no money being made and therefore no money circulating the state, thus creating a larger and larger deficit. While many citizens are receiving unemployment benefits this money is being used to pay their bills in order to keep their homes and families afloat.

With no income being collected, citizens can hardly afford the taxes they owe, and are not paying income tax, and very little sales tax as they are not spending money freely. With all this in mind is seems as if Rhode Island will never get out of their sticky situation. However, it is expected that in time jobs will come about, money will be made, taxes will be paid, and the deficit will slowly decrease.

When looking at the situation Rhode Island is in, how many other states are facing something similar? Is our Nation facing something similar?

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Author: Sylvia Wayne

Category: Current News

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