Gov. Ralph Northam recently announced that Virginia’s unemployment rate decreased — but barely — 0.1-percentage point to 5.1 percent in March, which is down 6.2 percentage points from its peak of 11.3 percent in April 2020. The Commonwealth’s seasonally adjusted unemployment rate continues to be below the national rate of 6.0 percent.
“Virginia’s unemployment rate is steadily improving and we are making real progress in safely reopening our economy,” said Northam. “While we have made great strides in our recovery, we know there is still more work to do. We will continue to focus our efforts bringing more Virginians into the workforce and supporting families, businesses, and communities with the resources they need to build back stronger.”
Total non-farm payroll employment increased by 800 jobs in March. The labor force increased by 1,618 to 4,238,239, as the number of unemployed residents decreased by 5,051. The number of employed residents rose by 6,669 to 4,023,563. In March 2021, Virginia saw over-the-year job losses of 4.4 percent.
“As more and more Virginians receive vaccines, we get closer to ending this pandemic, and our economy becomes stronger,” said Secretary of Commerce and Trade Brian Ball. “Despite a tough year, companies have continued to expand and create new jobs in Virginia thanks to our strong business climate and world-class workforce.”
“Virginia’s workers and businesses have faced many challenges during the COVID-19 pandemic, but their resolve and perseverance has helped overcome them,” said Chief Workforce Development Advisor Megan Healy. “The growing rate of vaccinations gives us confidence that this downward trend will continue in the months ahead. We will keep working diligently to assist Virginians with job training programs and help them gain employment in a changing, post-pandemic job market.”
In March, the private sector recorded an over-the-year loss of 145,200 jobs, while employment in the public sector lost 36,800 jobs. Compared to a year ago, on a seasonally adjusted basis, all 11 major industry divisions experienced employment decreases.
The largest over-the-year job loss occurred in leisure and hospitality, down 76,600 jobs, or 18.8 percent. The next largest over-the-year job loss occurred in government, down 36,800 jobs, or 5.0 percent. Local government employment fell by 30,700 jobs and state government employment was down 7,400 jobs, while the federal government added 1,300 jobs. Education and health services experienced the third largest over-the-year job loss of 22,100 jobs, or 4.0 percent.