Newport Comprehensive Land Use Plan - Existing Conditions | Page 43

4 Economic Development
Newport’s economy remains grounded in hospitality, the U.S. Navy, health and human services
and academia. While these sectors provide a sound foundation, in recent years employment
growth has been stagnant. City population is expected to decline and the city’s permanent
residents are growing older. Adding to these challenges is the prospect of sea level rise and its
associated impacts on one of the city’s primary concentrations of economic activity,
employment and tax base. This chapter attempts to describe in general terms, the current state
of affairs, relevant trends and issues and how Newport can leverage these to maximize its
chances for continued success.

4.1 Existing Conditions
Background

Economic development is the foundation upon which a community is able to grow and generate
revenue. This section examines key economic and market indicators in the City of Newport
such as employment trends, largest employers, revenue sources and others. Reviewing this data
enables the City to assess the strengths and weaknesses of Newport’s economy which, in turn,
will allow for targeted goals and policies that strengthen and improve Newport’s economic
condition. Various data resources were used to develop this assessment including the State of
Rhode Island, U.S. Census Bureau and the City of Newport.

Labor Force and Employment

On average, the employment rate in Newport is similar to that of the state as a whole.
As shown in the Table 4-1, the employment rate in Newport saw a slight decrease of one percent
from 2010 to 2014. Comparing Newport to a municipality of a similar size, Westerly, marginal
differences in employment rates can be found. Employment rates for Newport and Westerly
have been between 58% - 62% since the year 2000. These employment rates are consistent with
the State of Rhode Island’s average which has ranged between 59.
In terms of unemployment rates, Newport had the lowest rate of the three jurisdictions in 2014.
Table 4-1 shows that in 2014, Newport had an unemployment rate of 3.80%. This is significantly
lower to that of the State’s percentage, which was 6.20%.

Draft Existing Conditions (March 2016)

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