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February unemployment rate stable in area, state
3.9 percent in Richmond metro area is well-below 5.2 percent national average
 
Thursday, Apr 03, 2008 - 12:08 AM 
 
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By EMILY C. DOOLEY
TIMES-DISPATCH STAFF WRITER

Despite growing fears the national economy is in a recession or heading into one, unemployment numbers remained stable from January to February in the greater Richmond area and Virginia.

The jobless rate of 3.9 percent in Richmond metropolitan area was higher than the statewide average of 3.8 percent but well-below the national jobless rate of 5.2 percent, according to data released yesterday by the Virginia Employment Commission.

"We don't seem to be getting any worse, but we don't seem to be getting any better," said William F. Mezger, chief economist with the commission.

One reason for the lack of change in the state jobless rate was a mild February with few instances of weather canceling outdoor work, Mezger said.

The work week increased in the manufacturing sector, where production workers averaged 4 hours of overtime each week. That is 2.9 hours more than during the same period last year and the longest work week since the state began gathering work-week numbers in the early 1950s, Mezger said.

The extra hours may indicate that production companies are getting more orders for work and using existing employees to fill that demand. "Usually the long work week is a sign of the economy improving," Mezger said.

Fears of a slowing economy may also be a contributor.

"The fact that hours are up is good news, but there may be an underlying current that is negative," said Christine Chmura, president and chief economist with Chmura Economics & Analytics. "It could be that manufacturers are holding back from hiring new workers because they are concerned about future growth in the economy."

Arlington County's unemployment rate of 2.3 percent was the lowest among the state's localities. Martinsville had the highest rate, at 11.2 percent.
Contact Emily C. Dooley at (804) 649-6016 or edooley@timesdispatch.com.

 

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