Largest Unemployment Rate Drop in Over a Year

Governor Glenn Youngkin today announced the number of employed Virginians expanded to more than 4.2 million workers in June 2022. Virginia has added nearly 94,000 employed residents since February 1st. Virginia’s unemployment rate fell to 2.8 percent in June. This continues to be below the national rate, which was unchanged at 3.6 percent.

According to BLS household survey data, the number of employed residents rose by 13,792 to 4,232,192. In 2022, employment growth has accelerated by averaging nearly 19,000 a month, over four times the 2021 average. The Commonwealth’s seasonally adjusted unemployment rate of 2.8 percent is 1.2 percentage points below the rate from a year ago. The labor force increased by 6,250 to 4,353,465 as the number of unemployed workers contracted by 7,542, the largest amount in a year.

The Commonwealth’s labor force participation rate, measuring the proportion of the civilian population age 16 and older that is employed or actively looking for work, was unchanged at 63.8 percent in June.

“The June unemployment rate dropping to 2.8% is promising news for Virginia’s economic health and is a welcome return to pre-pandemic unemployment levels,” said Governor Glenn Youngkin. “In such a competitive labor market, we remain committed to expanding workforce development opportunities for Virginians. While the 94,000 job additions is promising, we must remain vigilant regarding the workforce participation rate, which does continue to lag. I am focused on increasing Virginia’s participation rate across the commonwealth.”

“Virginia’s economic performance continues to rebound at a healthy pace,” said Secretary of Commerce and Trade Caren Merrick. “Virginia’s on course to continue adding jobs if employers can find workers to fill them. We’re still down nearly 120,000 people in our labor force since before the pandemic.”

“Virginia’s unemployment and labor force participation rates continue to outpace the nation, but as the governor said, there is still work to be done,” said Secretary of Labor Bryan Slater. “We are continuing to make progress on this, as evidenced by the large drop in the number of unemployed Virginians in June.”

Virginia nonfarm payrolls fell by 2,700 jobs in June to 4,045,100. From June 2021 to June 2022, the VEC estimates that establishments in Virginia gained 123,400 jobs, an increase of 3.1%. In June, the private sector recorded an over-the-year gain of 125,700 jobs, while employment in the public sector decreased 2,300 jobs.

Compared to a year ago, on a seasonally adjusted basis, nine of eleven major industry divisions experienced employment increases while two saw employment decreases. The largest over-the-year job gain occurred in leisure and hospitality, up 62,300 jobs (+17.9%). The second-largest over-the-year job gain occurred in education and health services, up 26,200 jobs (+4.9%). The third largest over-the-year job gain occurred in professional and business services, up 16,400 jobs (+2.1%). Other job gains occurred in trade, transportation, and utilities (+9,200 jobs), miscellaneous services (+4,600 jobs), manufacturing (+4,200 jobs), information (+3,200 jobs), construction (+500 jobs), and mining and logging (+400 jobs). The job losses occurred in government (-2,300 jobs) and finance, with a decrease of 1,300 jobs.

Within government, local government (+1,000 jobs) and state government (+900 jobs) both gained jobs over the year while the federal government saw a decrease in employment (-4,200 jobs). For more details, visit the Virginia Employment Commission’s website at vec.virginia.gov.