Virginia unemployment rate barely moved in July, dropping 0.1 points
(The Center Square) – Virginia’s unemployment rate barely moved in July, dropping just 0.1 percentage points from June numbers to reach 4.2%.
July was the second straight month the unemployment rate dropped only 0.1 percentage points on a month-to-month basis. The state saw a sharper decrease in unemployment when it eased COVID-19 restrictions, but the recovery has been slower in recent months as employers have struggled to find workers.
The labor force increased by 7,818 to reach 4,241,686 and the total number of unemployed residents decreased by 7,595. The number of employed residents increased by 15,413 to reach 4,065,473 workers. The rate was 3.7 percentage points lower than it was last year when restrictions were in place and the commonwealth continues to have a lower unemployment rate than the national average, which is 5.4%.
“Our administration is focused on creating an economic climate that will help Virginia’s workers and businesses thrive,” Northam said in a statement. “The impressive gains in payroll employment and the downward trend of unemployment rates continue to show the strength and resiliency of our economy and our workforce as we recover from the pandemic. Virginians have shown great resolve over the last year and a half, and it is evident in the numbers we are seeing in this report.”
Not every industry benefited from job increases over the month, as only five of the 11 major industry sectors had higher job numbers and six had lower numbers.
The largest increase was in leisure and hospitality services, which increased by 9,600 jobs and the second largest was in professional and business services, which increased by 5,600 jobs. Information, manufacturing and mining also saw an increase in job numbers.
Government jobs saw the sharpest decrease, losing a total of 8,800 jobs. Local government lost 7,900 jobs, state government lost 1,100 jobs and the federal government gained 200 jobs. The second largest decrease was in education and health services, which saw a decrease of 1,700 jobs. Trade, transportation and utilities lost 1,200 jobs, finance lost 1,100 jobs, construction lost 500 jobs and miscellaneous services lost 100 jobs.
“The continued decline in Virginia’s unemployment rate and the increase in payroll employment are all signs of a strong job market,” Secretary of Labor Megan Healy said in a statement. “We believe that workers will continue to re-enter the labor force and that the strong job market will continue in the coming months. Governor Northam and his administration remain committed to working with businesses and workforce development partners to ensure that every Virginian has the help and resources they need to find work.”
Some employers, particularly restaurants, have urged the state to stop offering the $300 in additional federal pandemic employment benefits, arguing that it’s been disincentivizing people to come back to work. The federal government is ending these pandemic-era benefits in the beginning of September.
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