Virginia is facing its worst summer job market in nearly three decades, according to a recent report from the Virginia Employment Commission.
The non-seasonally adjusted state unemployment rate was 7.0 percent in May, compared with 6.6 percent in April and 3.6 percent in May 2008, the report said.
“It appears to be the worst summer job market since the early ’80s,” said William Mezger, chief economist in the commission’s Economic Information Services Division. “It’s been about 27, 28 years since it’s been this bad.”
In Northern Virginia, unemployment nearly doubled in May compared with last year. The region’s unemployment rate was 5.3 percent, compared with 2.8 percent in May 2008.
Northern Virginia jurisdictions still enjoyed rates that were well below the state average. Arlington County had the lowest unemployment rate among the Virginia’s 134 jurisdictions at 4.5 percent. Fairfax and Loudoun counties were not far behind, with rates of 4.9 and 5.0, respectively. A 5.0 percent jobless rate is generally considered to be “full employment,” according to the commission.
The increased unemployment in May came as college graduates and students entered the labor market at the end of the school year.
“What you always get in May is the colleges close,” Mezger said. “A lot of Virginia college students come up to Northern Virginia to look for jobs.”
The suspension of automobile production for the rest of the 2009 model year also caused layoffs at Virginia auto part suppliers, he said.
April typically is the best month for employment in the first half of the year because of travel associated with the Easter holiday and college spring breaks, Mezger said. The leisure and hospitality industry actually added 15,300 workers in May because of longer operating hours at parks and resorts in preparation for the summer season.
Money from the federal stimulus package appeared to create some jobs at the federal and local levels, as construction employment rose 500 with the season to 193,100. But problems at auto manufacturers, suppliers and dealers will create additional unemployment for several more months, the report said.
Unemployment rates in the U.S. and the commonwealth May 2009 April 2009 April 2008 United States 9.1 8.6 5.2 Virginia 7.0 6.6 3.6 Northern Virginia 5.3 5.0 2.8 Arlington County 4.5 4.3 2.4 Fairfax County 4.9 4.6 2.6 Loudoun County 5.0 4.7 2.7 Pr. William County 5.6 5.3 3.1 Alexandria 5.2 4.9 2.7 Source: Virginia Employment Commission
