Governor Northam Announces Commonwealth’s Unemployment Rate falls to 2.8%

RICHMOND—Governor Ralph Northam today announced that Virginia’s seasonally adjusted unemployment rate decreased 0.1 percentage point in August to 2.8 percent, which was unchanged from a year ago. In August, the labor force expanded for the fourteenth consecutive month by 14,204, or 0.3 percent to set a new record high of 4,404,492, as the number of unemployed decreased by 3,551. Household employment increased by 17,755 to set a new high of 4,281,899. Virginia’s seasonally adjusted unemployment rate continues to be below the national rate, which was unchanged at 3.7 percent.

“The drop in Virginia’s unemployment rate is yet another sign that our economy remains strong and our efforts to create opportunity in every corner of the Commonwealth are paying real dividends,” said Governor Northam. “While we welcome this news, we also know that we still have challenges to overcome in making sure that all Virginians have access to affordable health care, a world-class education, and the skills they need to get a good-paying job. My administration will stay focused on making the strategic investments that will help the families we serve and ensure that Virginia continues to be the best place to do business.”

Virginia has the lowest seasonally adjusted unemployment rate among the Southeast states. Virginia has the third best rate among the states east of the Mississippi. Virginia is ranked sixth in the nation for the seasonally adjusted unemployment rate along with Colorado and Utah.

“The strength of Virginia’s labor market is evident not only in the declining unemployment rate, but in increasing rates of labor force participation that show how some who had been on the sidelines have resumed looking for work,” said Secretary of Commerce and Trade Brian Ball. “We’re proud of this statewide unemployment rate. But as some localities continue to struggle with a higher rate, the Governor remains focused on bringing new investment and jobs to all regions of the Commonwealth.”

Over-the-year employment growth in Virginia has been positive for 65 consecutive months. For August, Virginia’s over-the-year growth of 1.8 percent was greater than the national rate. Nationally, over-the-year growth was higher in August at 1.5 percent from 0.8 percent in July and 0.9 percent in June.

“Virginia’s thoughtful investments in workforce development are paying off in the form of sustained low unemployment rates and a growing labor force,” said Chief Workforce Development Advisor Megan Healy. “Thanks to Governor Northam’s leadership, more Virginians than in our Commonwealth’s history have either now secured or are seeking a job. We are encouraged by our progress, and will continue to deliver opportunities and results for job seekers and employers throughout Virginia in the months ahead.”

In August, the private sector recorded an over-the-year gain of 35,500 jobs, while employment in the public sector increased as well by 1,200 jobs. Compared to a year ago, on a seasonally adjusted basis, eight of the eleven major industry divisions experienced employment gains, while the other three experienced employment losses.

For a greater statistical breakdown visit the Virginia Employment Commission’s website at www.vec.virginia.gov.