Richmond region feels impact as Virginia unemployment climbs
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Virginia was the only state in the nation that saw a statistically significant increase in unemployment last month, according to the latest U.S. Bureau of Labor Statistics data.
Why it matters: More than 160,000 Virginians were out of work but looking for a job in June amid a gloomy national labor outlook for the unemployed.
State of play: The latest unemployment data, out Friday, suggests the state's job losses go beyond the Trump administration's culling of federal workers.
- Overall, there were roughly 8,400 fewer jobs in Virginia in June than in May.
- And Richmond saw the third-highest month-over-month decrease in nonfarm employment in the state.
Zoom in: All but four of the dozen or so nonagricultural industries in Virginia posted job losses between May and June, per detailed data from Virginia Works, the state's workforce development arm.
The biggest losses by sector came from:
- Professional and business services: ⬇️ 3,500
- Federal government: ⬇️ 2,500
- Education and health services: ⬇️ 2,200
- Leisure and hospitality: ⬇️ 1,500
The state's monthly job gains were in state government (+2,200), construction (+1,700), goods producing (+1,000), and local government (+100).
By the numbers: Virginia's unemployment rate hit 3.5% in June, the sixth month in a row the state's rate has increased.
- Metro Richmond's unemployment rate also ticked up slightly to 3.5%.
- Both are below the national average of 4.1%.
Regionally, Northern Virginia took the brunt of the monthly jobs losses, per Virginia Works.
- Of the 8,400 decrease in nonfarm employment between May and June, more than half of the jobs lost — 4,700 — were in NoVa.
- Virginia Beach/Norfolk MSA lost 2,600 jobs.
- Richmond MSA, which includes 20 localities across the region, lost 1,100.
Yes, but: Year over year, Virginia added 35,600 jobs, largely in service-providing fields, construction, and heath care and education.
- Meanwhile, professional and business services jobs — which tends to be a catch-all category for white-collar jobs — in the state fell by 6,900.
What they're saying: "We expect there will be federal job reductions and that the growth in non-federal jobs over the course of the year ... will provide opportunities for those who have experienced job dislocation," Gov. Glenn Youngkin said in a statement Friday.
Zoom out: Nationwide, it's a low-hire, low-fire labor market — with hiring concentrated in just a few sectors, and people with jobs staying put, Axios' Courtenay Brown reports.
- This is being exacerbated by the rise of AI, as employers experiment with how to make their workforces more productive.
What's next: State officials are banking on new programs — including an AI training partnership with Google — to help workers pivot amid evolving job markets.