(File Photo) Photo|Steve Klamkin

Chafee: unemployment office layoffs show economy recovering

Posted: 6/7/2012 10:46:13 AM
Updated: 6/7/2012 10:59:35 AM

Governor Lincoln Chafee says the 60 to 70 layoffs coming to the unemployment office at the Department of Labor and Training is an indicator that the Rhode Island economy is recovering.

“As people are getting laid off they are hiring at DLT  and with the stabilizing of , it’s still not good, unemployment is still high but it is not the glut of requests for unemployment insurance,” said Chafee.

When asked if he really believes that this is a sign that the economy is recovering he said, “Yes, I do. Slowly but surely we are stabilizing, and ticking in the right direction.” However state unemployment numbers show the opposite. In April, the state’s unemployment rate rose for the third consecutive month from 11.1% to 11.2%.

Chafee said there are less unemployment requests to process so the office can survive with less staff. “Well the DLT is the opposite of the economy when the economy is bad they are hiring to deal with the unemployment insurance issues and as the economy stabilized unfortunately it goes the other way they start to lay off those employees that they had to hire during the glut of unemployment insurance requests,” said Chafee.

Despite Chafee’s comments the DLT said yesterday in a statement that the 60 to 70 layoffs is a result of the end of the federal stimulus money.