Virginia job creation increased in July, but staffing remains a challenge

Reports from BLS and Richmond Fed show mixed views

Published

20 August 2024

from

Kate Andrews

Total employment in Virginia rose by 4,800 jobs in July, the Federal Reserve Bank of Richmond said Friday in its regional economic review. But some employers are struggling to fill positions. According to a U.S. Bureau of Labor Statistics survey released Tuesday, Virginia's hiring rate fell by 33,000 in June from May.

The state's unemployment rate remained unchanged for the third straight month in July at 2.7%, according to the Richmond Fed report. The leisure and hospitality sector accounted for the lion's share of new jobs (4,600 total statewide), followed by 2,100 jobs in professional and business services and 800 jobs in trade, transportation and utilities. These gains compare with job losses in the financial services (1,800 jobs) and information (600 jobs) sectors last month.

“With businesses steadily hiring and expanding and unemployment remaining steady, we are on a stable path to continue Virginia's growth,” the state's Secretary of Commerce, Caren Merrick, said in a statement. “Our focus remains on creating a business-friendly environment that attracts investment and promotes long-term economic growth across all sectors of the Commonwealth.”

The BLS Job Openings and Labor Turnover Survey (JOLTS) found that while new hiring in Virginia declined to 147,000 in June, compared to 180,000 in May and 186,000 in June 2023, it is comparable to the hiring rate five years ago, in pre-pandemic times. There were 250,000 job openings in Virginia on the last business day of June, a seasonally adjusted figure that remained the same as the revised May number, and the June job opening rate was 5.5%, also similar to the May rate and above the 4.9% nationwide, which was unchanged from the previous month.

The survey shows that Virginia's labor force has declined 0.1% to 66.1% since May.

Sectors with job growth in Virginia last year include education and health services with 24,900 jobs at the top, followed by 14,500 jobs in professional business services, 11,900 jobs in public service and 11,300 jobs in construction, according to the Richmond Fed.

In the Fed's Fifth District, which includes Maryland, North and South Carolina, Virginia, Washington, D.C. and West Virginia, the state's employment rate was in the middle of the pack. South Carolina and Maryland reported 8,400 and 6,100 new jobs, respectively, in July, and North Carolina reported 700 new jobs. Washington's employment rate was unchanged, and West Virginia's employment rate fell by 700 jobs.