Virginia unemployment rate drops slightly, as labor force also tightens

Virginia unemployment was at 2.7 percent in July, as the number of those employed in the Commonwealth was up by 5,865.

The unemployment rate was down a tenth of a point from June, and was 1.1 points lower than July 2021.

The labor force participation rate – the measure of the proportion of the civilian population age 16 and older that is employed or actively looking for work – was down a tenth of a point, to 63.8 percent.

Inside the numbers

Virginia’s nonagricultural employment, from the monthly establishment survey, rose by 20,600 jobs in July to 4,070,800. June’s preliminary estimate was revised upward by 5,100, adding to that month’s job gain. In July, private sector employment increased by 13,800 jobs to 3,358,300, while public sector employment increased 6,800 to end at 712,500.

Increases within that sector occurred in federal government employment (+5,400 jobs), local government (+1,400 jobs), and state government held steady.

Employment rose in eight of eleven major industry sectors, and declined in three. The largest job gain during July occurred in Government employment, with an increase of 6,800 jobs to 712,500. The second largest increase occurred in Education and Health Services (+4,800 jobs) to 566,600. Leisure and Hospitality was third, with a gain of 4,000 jobs, rising to 415,900. Other increases included Trade, Transportation, and Utilities (+2,900) to 668,400; Professional and Business Services (+2,100) to 793,800; Information (+600 jobs) to 69,600; Construction (+400) to 206,100; and Mining and Logging (+100 jobs) to 7,500.

The largest job loss during July occurred in Finance (-500 jobs) to 206,800. The second largest decrease occurred in Miscellaneous Services, with a decrease of 400 jobs to 186,200. The remaining loss was in Manufacturing, with a decrease of 200 jobs to 237,400.