Photo: jeroen020 (flickr)

News that the U.S. economy is doing worse than we thought is not news to the residents of Rhode Island.

In the country's smallest state, families like the Hallams have been feeling the effects of a shrinking GDP for some time now, the BBC finds. After working in the trucking and packing industries for years, the two brothers and their cousin are unemployed as they approach what would should be their retirement years.

Their personal story reflects the statistics surrounding the state. Rhode Island and Michigan are tied for the highest unemployment rate in the nation. The 1,044-square-mile state boasts the sixth-worst foreclosure rate in the country. Food pantries have reported a dramatic spike in use, with one pantry reporting serving 970 families this September, up from 261 families one year ago.

According to Leonard Lardaro, an economics professor at the University of Rhode Island who tracks Rhode Island's economic health, the situation looks pretty bleak.

“I hate to say it but a distinct improvement for Rhode Island right now would be to have our economy be dead in the water. Statistically this is the worst year. Clearly we’re going down faster than other states.”

So what's the problem with Rhode Island's economy? While some point a finger at high taxes, others cite the state's emphasis on manufacturing training. Small businesses make up 80 percent of Rhode Island's businesses, and these small businesses are struggling more than their larger counterparts to keep up with the current financial crisis, according to the New York Times. As big industries leave the state, recession-sensitive hospitality and service industries have replaced them.

Things might not get better soon. Gov. Donald L. Carcier's spokeswoman told the Times that Rhode Island historically has been one of the last states to come out of national recessions.