Virginia sees small rise in unemployment but continues strong yearly job growth

Richmond, Virginia – Governor Glenn Youngkin announced that, according to the latest data from the Bureau of Labor Statistics Current Employment Statistics (BLS CES), Virginia saw a mixed labor market picture in June 2025. While nonfarm employment decreased by 8,400 jobs over the month, employment still showed a strong year-over-year gain of 35,600 jobs since June 2024. Since January 2022, Virginia has added a total of 263,700 nonfarm jobs.

“The announced Federal and contractor workforce reductions resulted in the month’s decline in jobs of 8,400 while the full year saw growth of more than 35,000,” said Governor Youngkin. “As I have said previously, we expect there will be federal job reductions and that the growth in non-federal jobs over the course of the year, nearly 200,000 open and unfilled positions and 80,000 jobs being created by the $120 billion in business investment Virginia has attracted, will provide opportunities for those who have experienced job dislocation. Over the next few months, we do expect to see the push and pull on the jobs market as some areas of the federal government reduce employment and others grow, like the defense sector and the broader private sector. Virginia’s financial and economic strength continue to provide the fuel for new opportunities and growth.”

Unemployment Rate and Labor Force Trends

The seasonally adjusted unemployment rate for June 2025 rose slightly by 0.1 percentage points to 3.5 percent, still comfortably below the national unemployment rate of 4.1 percent. The labor force decreased by 10,116 individuals to 4,558,145, while the number of unemployed residents increased by 4,025 to 160,116. Virginia’s labor force participation rate, which measures the proportion of civilians aged 16 and older who are employed or seeking work, dipped by 0.2 percentage points to 65.0 percent.

State Efforts to Strengthen Workforce

Virginia officials emphasized the state’s ongoing efforts to support workers. “Here in the Commonwealth, we are laser-focused on engaging workers and removing barriers to employment and career advancement,” said Secretary of Labor Bryan Slater. “We’re expanding access to training, apprenticeships, and supportive services to help more Virginians reenter and remain in the workforce.”

Secretary of Commerce and Trade Juan Pablo Segura added, “Short-term shifts in employment data don’t change our long-term mission. We remain committed to fostering conditions where businesses can start, scale, and hire. By promoting innovation, cutting red tape, and investing in Virginia’s diverse regions, we’re building a stronger, more resilient economy for all.”

Understanding the Data

The BLS household survey (Local Area Unemployment Statistics, or LAUS) tracks employment status, while the establishment survey (CES) counts employees on payrolls. Notably, CES data excludes business owners, self-employed workers, unpaid volunteers, and household workers, and does not count those on unpaid leave or involved in labor disputes.

Monthly employment data show:

• Nonfarm employment in June: 4,398,000 (down 14,100 from May)

• Labor force: 4,558,100 (down 10,100 from May)

• Unemployed residents: 160,100 (up 4,000 from May)

Despite June’s dip, the long-term trend since January 2022 shows strong cumulative gains across employment indicators.

For those interested in deeper insights, visit the Virginia Works labor market information site at https://virginiaworks.com/. Virginia’s leadership remains optimistic that current investments and workforce initiatives will help absorb federal job cuts and continue to drive economic strength across the Commonwealth.