Virginia unemployment rate increases to 6.3 percent

August saw the largest monthly increase in unemployed Virginians in more than two years as public sector and information industry jobs dropped significantly from July.

According to the latest numbers from the Virginia Employment Commission released Friday, the seasonally adjusted unemployment rate in the state rose for the second consecutive month, from 6.1 percent to 6.3 percent. However, that’s an improvement over the 6.8 percent mark of August 2010 and below the national level of 9.1 percent.

The number of unemployed spiked in August by 9,535, the most since April 2009, while just 6,314 jobs were created.

Local governments shed 6,000 jobs in August as officials struggle with tighter budgets. The federal government lost 1,200 workers while Virginia government added 1,500.

About 3,800 private sector jobs were lost, mainly in the professional and business services and informational industries. Private education and health services and construction, however, created a combined 4,100 jobs.

Manufacturers created 1,700 jobs in the last year, one of five industries to experience growth since August 2010 along with professional and business services, trade and transportation, private education and health services and the government. But Virginia manufacturing workers earned on average $44.85 less per week last month than they did a year ago.

The announcement comes on the heels of a positive August revenue report earlier this week that showed more money was pouring into state coffers than previously expected. However, Gov. Bob McDonnell warned that the windfall did not necessarily mean the state’s jobs climate was improving amid a stagnant national economic recovery.

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