Employment drops in August, but Virginia’s growth trend remains strong since 2022
Richmond, Virginia – Governor Glenn Youngkin announced today that Virginia experienced a drop of 5,800 non-farm payroll jobs in August, as reported by the Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) survey. Despite this monthly decline, the state has seen significant overall growth, with 61,600 new jobs added over the past year and 238,200 jobs since January 2022.
Governor Youngkin noted the state’s steady progress despite economic challenges, stating, “For the past two and a half years, we have driven record job growth and business investment despite inflationary headwinds from Washington.”
Labor Market Shows Signs of Strain
While Virginia has maintained strong job growth in the long term, the August numbers highlight some current challenges. Secretary of Labor Bryan Slater discussed the dip in labor force participation and employment, emphasizing the need for targeted job training and workforce engagement. “Our goal is to not only mitigate these short-term fluctuations but to build a stronger, more resilient labor market for the future,” Slater said.
Secretary of Commerce and Trade Caren Merrick echoed these sentiments, explaining that the state is closely monitoring employment trends. “By fostering innovation and supporting industries that drive growth, we aim to strengthen Virginia’s economic landscape and ensure a robust environment for employment creation and economic development.”
Employment Data Highlights
The CES survey, which provides a count of jobs based on payroll records, revealed a drop of 5,800 payroll jobs, bringing the total to 4,241,100 jobs in the state. The LAUS (Local Area Unemployment Statistics) survey showed a similar trend, with the number of employed residents decreasing by 5,572 to 4,440,411. As a result, Virginia’s unemployment rate rose by 0.1 percentage points to 2.8%, while the labor force slightly decreased by 2,172 people, reaching 4,568,536.
The LAUS survey also indicated that the labor force participation rate fell by 0.1 percentage points, settling at 66.0%. This rate measures the percentage of individuals aged 16 and older who are either working or actively seeking employment.
Understanding the Data
The CES and LAUS surveys differ in their approach to collecting employment data. The CES survey is based on payroll records and counts jobs, while LAUS collects information through household interviews and provides a more comprehensive look at both employment and unemployment rates.
The CES survey does not count business owners, self-employed individuals, or unpaid workers, whereas the LAUS survey distinguishes between employed and unemployed individuals but does not account for factors such as self-employment. Both surveys help provide a more accurate picture of Virginia’s labor market.
Outlook and Next Steps
Governor Youngkin, Secretary Slater, and Secretary Merrick are all committed to addressing the state’s current labor market challenges. With continued focus on job training programs, improved employment services, and economic development initiatives, the state aims to maintain its long-term job growth and economic stability.
As Secretary Merrick explained, “These efforts will strengthen the foundation of Virginia’s economy, allowing us to overcome short-term fluctuations and build a more resilient labor market for the future.”
For more information on the state’s labor data and employment opportunities, visit the Virginia Department of Workforce Development and Advancement website at Virginia Works.
