Virginia Employment Numbers are Up

Governor Glenn Youngkin announced an increase of 23,000 more employed Virginians in June, bringing the total to 201,472 more Virginians employed since January 2022. The labor force participation rate also rose 0.1 of a percentage point to 66.6%, the highest rate since January 2013. According to the Bureau of Labor and Statistics Local Area Unemployment Statistics (“LAUS”, or “the household survey”), the labor force in Virginia increased this month by 13,757 to 4,588,082, the largest number of workers since counting began in 1976.

“Virginians are back to work, with 200,000 more people working and the largest labor force in nearly 50 years,” said Governor Glenn Youngkin. “Virginia’s unemployment rate fell to its lowest level in nearly a year while more and more people are joining the labor force. Virginia’s economy continues to show positive growth and, as we accelerate talent development, bring down the cost of living and become even more business friendly, we can grow even more.”

With the significant increase of Virginians moving back into the workforce, The Commonwealth’s unemployment rate declined from 2.9 percent in May to 2.7 percent in June, and remained below the national rate, which decreased to 3.6 percent in June.

According to LAUS, the number of employed Virginians increased by 23,111 to 4,463,028 in June, and the number of unemployed residents decreased by 9,354 to 125,054.

“The robust health of Virginia’s labor market during the first half of 2023 is a great start,” said Secretary of Labor Bryan Slater. “We will continue to build on this momentum to ensure that every worker in the Commonwealth can obtain the skills necessary for a great career and thrive in this rapidly changing global economy.”

“The first six months of 2023 were a period of exciting labor force growth in the Commonwealth, nearly 120,000 Virginians have entered the labor force this year,” said Secretary Caren Merrick. “The labor force participation rate reached 66.6% this month, the highest since January 2013. Employers across the Commonwealth are challenged with finding talent, and we are committed to increasing this pool of highly trained workers for employers in Virginia.”

BLS publishes an additional employment figure from its Current Employment Statistics Survey (“CES” or “establishment survey”). Virginia CES employment rose by 2,900 jobs in June to 4,146,400 and has increased by 92,500 since June 2022.

The CES survey uses payroll records of establishment employers and is designed to provide a count of jobs under which the employer pays unemployment insurance. The LAUS survey is based on household interviews conducted each month for the Bureau of Labor Statistics and provides comprehensive data on the labor force, including those who are employed and unemployed. Establishment survey data reflects changes for updated seasonal adjustment factors, and industry classification conversions (NAICS), as part of the annual benchmarking process.

The household survey only distinguishes between whether a person is employed or unemployed, whereas CES counts each employee that is on an employer’s payroll. CES excludes business owners, self-employed persons, unpaid volunteers and private household workers, and those on unpaid leave or not working because of a labor dispute.

Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In June, six experienced over-the-month job gains, and five experienced a decline. The largest job gain during June occurred in Government, with an increase of 6,000 jobs to 733,900. The second largest increase occurred in Manufacturing (+900 jobs) to 246,200. Trade, Transportation, and Utilities was third, with a gain of 700 jobs, rising to 666,600. Education and Health Services was fourth, with a gain of 300 jobs, rising to 575,200. Other increases included Mining which rose by 200 to 7,200 while Miscellaneous Services increased by 100 to 195,000. The largest job loss during June occurred in Construction (-3,200 jobs) to 211,900. The second largest decrease occurred in Information, with a decrease of 1,000 jobs to 71,400. The third largest loss occurred in Leisure and Hospitality Services, with a decrease of 900 jobs to 407,900. Finance and Professional and Business Services had the fourth largest decreases, each dropping by 100 to 216,200 and 814,900, respectively.

From June 2022 to June 2023, the VEC estimates that total nonfarm employment in Virginia gained 92,500 jobs, an increase of 2.3 percent. In June, the private sector recorded an over-the-year gain of 70,300 jobs, while employment in the public sector increased by 22,200 jobs.

For the eleven industry sectors in Virginia over the year, nine of eleven major industry divisions experienced employment increases while two were unchanged. The largest absolute over-the-year job gain occurred in Education and Health Services, up 22,700 jobs (+4.1%). The second largest over-the-year job gain occurred in Government, up 22,200 jobs (+3.1%). The third largest over-the-year job gain occurred in Leisure and Hospitality Services, up 21,000 jobs (+5.4%). Other job gains occurred in Professional and Business Services (+12,300 jobs); Miscellaneous Services (+5,300 jobs); Construction (+3,400 jobs); Trade, Transportation, and Utilities (+2,500 jobs); Information (+2,100 jobs); Manufacturing (+1,000 jobs). Mining and Finance were unchanged over the year. Public sector employment increased by 22,200 to 733,900. Within that sector, federal government jobs decreased by 200 to 186,000, state government employment increased by 8,200 to 160,000, and local government increased by 14,200 to 387,900 over the year. For more details, visit the Virginia Employment Commission’s website at vec.virginia.gov.