Virginia adds 500 new jobs in April as unemployment edges higher and labor force shrinks slightly

Richmond, Virginia – In April 2025, Virginia’s economy experienced both modest job growth and subtle signs of strain, according to newly released data from the Bureau of Labor Statistics (BLS). Governor Glenn Youngkin announced that the Commonwealth added 500 nonfarm payroll jobs over the month, bringing the total number of employed individuals in this category to 4,272,700. Since April 2024, the state has seen an increase of 47,900 nonfarm payroll jobs and a notable jump of 268,100 jobs since January 2022.

“In addition to the 500 nonfarm payroll jobs added in April, March’s positive revision includes another 800 jobs,” stated Governor Glenn Youngkin. “This report underscores the resiliency of Virginia’s labor market and the need for us to continue our pro-growth policies that have seen record investment by companies wanting to be part of Virginia’s future.”

Despite the rise in payroll employment, other labor indicators tell a more nuanced story. The BLS Local Area Unemployment Statistics (LAUS) revealed that Virginia’s seasonally adjusted unemployment rate increased slightly to 3.3 percent in April. This figure is 0.5 percentage points higher than it was a year ago but still remains below the national rate, which held steady at 4.2 percent.

Labor Force Shrinks as Unemployment Rises

While jobs were added in April, the labor force saw a reduction. The number of people either working or actively seeking employment in Virginia fell by 7,540 to a total of 4,579,104. Alongside this drop, the number of employed residents decreased by 13,845 to 4,427,162. Meanwhile, the number of unemployed residents rose by 6,305, reaching 151,942.

The labor force participation rate dipped slightly to 65.4 percent, down 0.1 percentage points from the previous month. However, it still stands significantly higher—by 2.8 percentage points—than the national rate. This figure reflects the proportion of Virginians aged 16 and older who are either working or actively looking for work.

Despite the drop in participation, Secretary of Labor Bryan Slater expressed optimism about the long-term outlook:
“Despite a dip in overall labor force numbers, businesses across Virginia are still adding jobs. We’re working closely with industries to support expansion and investment that will drive long-term job creation,” he said. “Virginia continues to attract and retain high-quality employers. The growth in nonfarm payroll employment is a sign that companies remain confident in our workforce and economy.”

Understanding the Surveys Behind the Numbers

The BLS report is derived from two primary surveys—the Current Employment Statistics (CES), also known as the establishment survey, and the Local Area Unemployment Statistics (LAUS), or household survey. The CES collects payroll data from employers to track nonfarm job growth and does not include self-employed individuals, unpaid workers, or private household staff. On the other hand, the LAUS survey is based on household interviews and provides a more comprehensive look at the labor force, capturing both employment and unemployment data.

This month’s CES data incorporated adjustments from seasonal factors and industry classification updates under the North American Industry Classification System (NAICS), part of BLS’s annual benchmarking efforts.

A Mixed Outlook with Resilient Underpinnings

Looking back to January 2022, Virginia has seen a significant uptick in key labor metrics. Nonfarm employment has increased by over 268,000 jobs, and the total labor force has grown by over 205,000. Still, the recent uptick in unemployment and decrease in participation suggest challenges that could emerge if not met with continued investment and workforce development.

While April’s report presents a mixed picture, the underlying message from state leaders remains focused on confidence and growth. With businesses continuing to invest and expand across the Commonwealth, Virginia’s labor market, though facing headwinds, appears to be holding steady.

For further information and detailed statistics, visit the Virginia Works website at www.virginiaworks.gov.