Richmond's true unemployment rate is around 19%
Add Axios as your preferred source to
see more of our stories on Google.
The Richmond area was among the major U.S. metros with a low rate of true unemployment last year, according to a study from the Ludwig Institute for Shared Economic Prosperity.
Why it matters: The True Rate of Unemployment measures the proportion of workers looking for a full-time job that pays a living wage, not just any wage — and who are unable to find one.
State of play: Richmond metro had a true unemployment rate of 19.2% in 2023, compared to its 3% official rate last year, per the Bureau of Labor Statistics.
- Richmond's true rate is significantly better than the Charlottesville (32%), Blacksburg (25.7%) and Roanoke (19.8%) metros.
- Virginia Beach (18.6%) and the D.C. metro (17.9%) had us beat.
The big picture: Boom towns like Denver, Nashville and Dallas are seeing low levels of true unemployment — in stark contrast to areas such as El Paso and New Orleans with large numbers of low-wage jobs, according to the True Employment report.
- Nationwide, the True Unemployment rate is 24.2%; it averaged 23% in 2023.
What they're saying: "Local communities investing in infrastructure, housing, and future-oriented industries consistently outperform those more reliant on low-wage jobs," says LISEP founder Gene Ludwig.
How it works: The think tank's proprietary system measures the proportion of workers looking for and unable to find a full-time job that pays more than $25,000 per year.
Between the lines: The True Unemployment rate tends to track — but also be much higher than — the BLS unemployment rate.
- That's because LISEP counts as unemployed anybody earning less than $25,000 per year, a group BLS excludes.
- LISEP, unlike BLS, also includes people who have stopped looking for work due to lack of jobs, demands of child care or other issues.
Worth noting: The living wage in Richmond is $25.38 an hour for two working adults with two children, the MIT living wage calculator shows.
- The state's minimum wage is set at $12 an hour; legislation to boost it to $15 an hour was vetoed this year.
The bottom line: There are plenty of good jobs in America — but they're not evenly distributed.