By Shirleen Guerra | The Center Square
(The Center Square) – Virginia’s job market is sending mixed signals, with the state’s unemployment rate rising in May even as employers added jobs.
This is according to new data from Virginia Works and the U.S. Bureau of Labor Statistics.
The state’s seasonally adjusted unemployment rate rose to 3.4% in May, the highest level since August 2021, up from 3.3% in April and 2.8% a year ago. Virginia’s labor force participation rate, which measures the share of people working or looking for work, dipped to 65.2%.
Over the past year, the number of employed Virginians fell by 15,460, dropping to just over 4.41 million, while the number of unemployed residents rose by nearly 4,000 to 155,918. The state’s overall labor force, which includes people working and those actively looking for work, decreased by about 11,500 to 4.57 million.
Despite the rise in unemployment, Virginia added 49,400 nonfarm jobs over the past year, reflecting continued hiring in many sectors.
Most of these gains came from the private sector, which includes businesses and organizations not run by the government, such as stores, restaurants, construction companies, and most hospitals. The private sector added 41,700 jobs, while government employment grew by 7,700 jobs.
Education and health services saw the largest growth, adding 27,600 jobs. Construction added 8,400 jobs, and trade, transportation, and utilities gained 4,100 jobs.
However, manufacturing employment dropped by 1,800 jobs over the year, while professional and business services employment declined by 1,300.
Job growth varied by region. The Arlington and Alexandria area added about 20,100 jobs over the year, while Richmond gained 12,300. Charlottesville added 1,600 jobs, while the Blacksburg-Christiansburg-Radford area lost 1,300.
While federal government jobs in Virginia fell by 4,900 over the year, local government jobs increased by 9,900, and state government jobs rose by 2,700.
Last week, McLean-based 22nd Century Technologies announced it will invest $1 million to expand its Virginia headquarters and offices across the state, creating 880 new jobs in IT services and workforce support for government contracts.
Gov. Glenn Youngkin said the company’s expansion shows confidence in Virginia’s workforce and business environment. Company CEO Anil Sharma said the expansion “reflects our commitment to innovation and public service.”
Fairfax County Board of Supervisors Chairman Jeffrey C. McKay said the announcement reflects Virginia’s ability to attract companies looking to grow and hire.
Virginia Works will release local May unemployment data on Wednesday, while June statewide employment figures are scheduled for release on July 18.
