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Virginia's jobless rate hits a five-year high
Summer furloughs contribute to 4.4% rate for the state; Richmond region hits 4.7%
 
Thursday, Aug 28, 2008 - 12:20 AM Updated: 01:00 AM
 
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By EMILY C. DOOLEY
TIMES-DISPATCH STAFF WRITER
• Interactive: Layoffs in Virginia

An increase in temporary summer layoffs helped propel Virginia's jobless rate in July to the highest level in five years.

From June to July, the unemployment rate increased 0.2 percentage points to 4.4 percent, according to numbers released yesterday by the Virginia Employment Commission.

The Richmond region again surpassed the state average, jumping to 4.7 percent unemployment, up 0.3 percentage points. The data show that an additional 2,100 people in the region sought unemployment benefits in July compared with the previous month.

"Things were really booming in 2006 and 2007 and there does seem to be a definite slowing right now," said William F. Mezger, the commission's chief economist.

"It looks like there's some deterioration in the economy."

Nationwide, the jobless rate for July was 6 percent.

The summer months in Virginia tend to have higher unemployment rates because of college students entering the work force and temporary layoffs.

This year, the number of plants and manufacturing firms that placed workers on summer furlough increased 17 percent and many of those closures were at smaller firms than usual, Mezger said.

The July Fourth holiday also was a factor because plants tend to close down around holidays, he said. Data for the month were compiled for the week of July 6-12.

Statewide, nine of 10 metropolitan areas saw an increase in unemployment claims. In the Winchester area, the rate remained steady at 4.4 percent.

Locally, only the counties of King and Queen, Amelia and Charles City saw a drop in unemployment claims, but only by 44 claims.

Arlington County had the lowest jobless rate in the state, 2.7 percent. Martinsville, which experienced a lot of furloughs, had the highest, at 12.2 percent, the commission reported.


Contact Emily C. Dooley at (804) 649-6016 or edooley@timesdispatch.com.

 
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