VA records 7,500 fewer unemployed, but labor force trails pre-pandemic levels
(The Center Square) – The total number of unemployed Virginians decreased by more than 7,500 people in June, but the commonwealth’s labor force numbers continue to trail its pre-pandemic levels.
“It was good news, no question, but the best news will be when the labor force and employment numbers blow past where they were before the pandemic and 2020 recession,” Stephen Haner, a senior fellow for state and local tax policy at the free-market Thomas Jefferson Institute, told The Center Square.
“We are not there yet,” Haner added.
Last month, there were 121,273 unemployed Virginians, which is 7,542 fewer than the previous month, according to numbers released by the Virginia Employment Commission. The state’s unemployment rate also dropped to 2.8%, which is eight-tenths of a percentage point lower than the national rate of 3.6%. However, the state’s labor force participation rate was unchanged over the month, at less than 64%.
Total employment also went up. The number of employed residents increased by 13,792, which brings the total number to 4,232,192. Employment increased in nine of the 11 major industry sectors and declined in the other two. The largest gain was in leisure and hospitality employment, which recorded 3,400 more jobs and the second largest increase was in education and health services, which saw a hike of 3,000 jobs. Other increases include finance, which had 1,900 more jobs, trade, transportation and utilities with 1,800 more jobs, professional and business services with 1,600 more jobs, construction with 1,100 more jobs, information with 1,100 more jobs, manufacturing with 300 more jobs and mining and logging with 100 more jobs.
Virginia added more than 94,000 jobs since February.
“The June unemployment rate dropping to 2.8% is promising news for Virginia’s economic health and is a welcome return to pre-pandemic unemployment levels,” Gov. Glenn Youngkin said in a statement. “In such a competitive labor market, we remain committed to expanding workforce development opportunities for Virginians. While the 94,000 job additions is promising, we must remain vigilant regarding the workforce participation rate, which does continue to lag. I am focused on increasing Virginia’s participation rate across the commonwealth.”
Government jobs saw the heaviest decrease with the industry losing 15,500 jobs and the miscellaneous category lost 1,500 jobs.
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