Virginia’s labor market strengthens with unemployment dropping to 2.7 percent
Richmond, Virginia – Governor Glenn Youngkin announced a continued decline in Virginia’s unemployment rate, signaling strong economic performance in the Commonwealth. According to the latest BLS Local Area Unemployment Statistics (LAUS, or “the household survey”), the seasonally adjusted unemployment rate in Virginia fell to 2.7 percent in April. This rate is a decrease of 0.1 percentage points from last month and stands 1.3 percentage points below the national rate, which saw a slight increase to 4.0 percent.
Governor Youngkin expressed optimism about Virginia’s economic trajectory, citing the impact of the state’s pro-jobs policies. “We continue to see the results of our pro-jobs strategies with Virginians joining the workforce in record numbers, having the most Virginians employed in the history of the Commonwealth and Virginia’s unemployment rates declining for the third consecutive month,” Governor Youngkin stated. Despite these positive trends, the Governor acknowledged the challenges posed by ongoing inflation, which he attributed to federal policies. He emphasized the state’s commitment to cautious economic management and proactive job growth initiatives.
The BLS Current Employment Statistics Survey (CES or “establishment survey”) highlighted additional positive developments, reporting a gain of 8,800 non-farm payroll jobs in May. This increase brings the total number of jobs added since January 2022 to 242,600. However, the household survey noted a modest decrease in the number of Virginians employed, down by 974 to 4,454,159. Despite this slight drop, there has been a net increase of 203,000 employed residents since January 2022.
The labor force itself has seen a decrease, with 5,946 fewer individuals, totaling 4,578,538. Concurrently, the unemployment count fell by 4,972 to 124,379, and the labor force participation rate dipped to 66.3 percent. This rate is an essential measure, reflecting the percentage of the civilian population aged 16 and older that is either employed or actively seeking employment.
Secretary of Labor Bryan Slater commented on the current state of employment, emphasizing the need for increased labor force participation to foster greater economic mobility for Virginians. “The Commonwealth’s unemployment rate continues to decline, which is positive – but we remain focused on increasing labor force participation, leading to economic mobility for even more Virginians,” Slater said.
Secretary of Commerce Caren Merrick also noted the robust interest from businesses in investing in Virginia, a testament to the state’s strong economic environment. “Our overall economy remains strong, and we continue to see elevated interest from businesses looking to grow and invest their next dollar right here in Virginia,” Merrick remarked, highlighting the positive trends in non-farm payroll employment over recent months.
The CES survey, which bases its data on payroll records from establishment employers, differs significantly from the LAUS household survey. The CES provides a count of jobs covered by unemployment insurance, excluding business owners, self-employed individuals, unpaid volunteers, private household workers, and those on unpaid leave or involved in labor disputes. In contrast, the LAUS survey, based on monthly household interviews conducted for the BLS, offers a broader view of the labor force, categorizing individuals simply as employed or unemployed.
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