Virginia unemployment rate sees longest rise since '08 crisis
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Virginia's unemployment rate is on a steady five-month increase — the longest streak since the 2008 Great Recession.
Why it matters: The Trump administration's federal job slashing and freezing of grants, contracts and medical research may be to blame.
State of play: Virginia's unemployment rate climbed to 3.4% in May, per new U.S. Bureau of Labor Statistics data.
- While still below the national average (4.2%), the uptick marks the state's highest unemployment level since August 2021.
By the numbers: The state's total labor force decreased by more than 11,500 compared with last May, according to new Virginia Works household survey data.
- Employed residents: ⬇️ 15,460
- Federal jobs: ⬇️ 4,900
- Unemployed residents: ⬆️ 3,929
Yes, but: Virginia's economy added nearly 50,000 nonfarm jobs over the past year, according to the state employment data, including 41,700 private sector jobs.
- Also on the rise: Local government jobs (9,900) and state jobs (2,700).
Worth noting: While full June data won't be out until late July, unemployment claims have been up year-over-year every week thus far, per Virginia Works' weekly initial claims reports.
The intrigue: The Trump administration announced Wednesday that it is moving the first major federal agency — the Department of Housing and Urban Development (HUD) — out of D.C. to Alexandria, Virginia.
- Gov. Glenn Youngkin touted the new headquarters and its 2,700-plus employees as a win, according to Fox 5.
- HUD will take over the National Science Foundation headquarters, according to ALX Now, displacing some 1,800 employees and causing a labor dispute.
What we're watching: Youngkin announced Friday that McLean-based IT company 22nd Century Technologies Inc. will expand its footprint in Virginia and create 880 new jobs across the state. A timeline is unclear.
Editor's note: This story has been updated to add June weekly initial claims data and information about a new IT company expansion in Virginia.