Students, auto suppliers push up Va. unemployment in June

Virginia’s seasonally unadjusted June unemployment rate rose to 7.3 percent from 7 percent in May, and was nearly twice the state’s 4 percent rate in June 2008, said a report released Wednesday.

Northern Virginia remained the best-performing metropolitan area for employment in the commonwealth, with an unemployment rate of 5.5 percent in June, up slightly from a 5.3 percent rate in May. Danville had the highest metro area jobless rate in June, at 12.8 percent.

Arlington County, Fairfax County, Alexandria and Loudoun County had the four lowest unemployment rates in the state in June, at 4.7 percent, 5.2 percent, 5.2 percent, and 5.3 percent, respectively.

Prince William County, Manassas and Manassas Park saw slightly higher unemployment numbers in June than the rest of Northern Virginia. Prince William’s rate was 5.9 percent, Manassas Park’s rate was 6.5 percent, and Manassas City’s rate was 8 percent.

Virginia’s seasonally unadjusted rate of 7.3 percent was still well below the national rate of 9.7 percent in June. An unemployment rate of 5 percent is considered “full employment,” according to the Virginia Employment Commission.

The increase in unemployment was attributable in part to more students entering an already bleak job market and the shuttering of Chrysler and General Motors franchises in the state, said a report released Wednesday by the commission.

“In June, high school students joined college youth already in what is a challenging summer job market as a result of the national employment picture,” the report said. “Because vehicle manufacturers production remained suspended, there continued to be layoffs at Virginia suppliers to the motor vehicle industry. Also, job numbers began to reflect Chrysler and General Motors dealer franchise closures.”

The July unemployment rate should be comparable with June’s, and college and high school students have generally experienced the worst summer job market since 1982, the report said.

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