January 25, 2022
Timothy Aylor
Senior Economist
Economic Information & Analytics Division
timothy.aylor@vec.virginia.gov
(804) 786-3976
The Virginia unemployment rate fell to 3.2 percent in December while total nonfarm payroll employment increased by 12,300
~ Changes in these measures since April 2020 primarily reflect the effects of the coronavirus (COVID-19) pandemic and efforts to contain it ~
RICHMOND— Virginia’s seasonally adjusted unemployment rate fell 0.2 of a percentage point in December to 3.2 percent, which is 2.4 percentage points below the rate from a year ago. According to household survey data in December, the labor force increased by 1,966 to 4,261,535, as the number of unemployed residents decreased by 9,033 to 136,557. The number of employed residents rose by 10,999 to 4,124,978. Virginia’s seasonally adjusted unemployment rate continues to be below the national rate, which fell from 4.2 to 3.9 percent. The Commonwealth’s labor force participation rate held steady at 63.0% and was above the national rate of 61.9 percent. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.
Virginia nonagricultural wage and salary employment, from the monthly establishment survey, rose by 12,300 jobs in December to 3,988,100. November’s preliminary estimate was revised upward by 5,100, adding to that month’s job gain. In December, private sector employment increased by 13,300 jobs to 3,272,300 while public sector payrolls decreased by 1,000 jobs to 715,800. Much of the decrease within that sector occurred in state government (-1,000 jobs), but employment also fell in federal government (-300 jobs), while local government gained 300 jobs.
Employment rose in nine of eleven major industry sectors and declined in two. The largest job gain during December occurred in leisure and hospitality with an increase of 6,000 jobs to 370,500. The second largest increase occurred in professional and business services (+3,400 jobs) to 789,400. Trade and transportation gained 2,700 jobs, rising to 664,400 in December. Other increases included education and health services (+400 jobs) to 541,500, finance (+400 jobs) to 204,600, manufacturing (+400 jobs) to 238,600, construction (+200 jobs) to 205,100, and miscellaneous (+200 jobs) to 182,800. The largest job loss during December occurred in government (-1,000 jobs) to 715,800. The second largest decrease occurred in information with a decrease of 500 jobs to 67,400.
Nonfarm Employment in Virginia*
Seasonally Adjusted
Industry | Employment | November 2021 to | December 2020 to | ||||
December | November | December | Change | % Change | Change | % Change | |
Total Nonfarm | 3,988,100 | 3,975,800 | 3,881,100 | 12,300 | 0.3% | 107,000 | 2.8% |
Total Private Sector | 3,272,300 | 3,259,000 | 3,182,300 | 13,300 | 0.4% | 90,000 | 2.8% |
Goods-Producing | 451,700 | 451,000 | 449,900 | 700 | 0.2% | 1,800 | 0.4% |
Mining | 8,000 | 7,900 | 6,900 | 100 | 1.3% | 1,100 | 15.9% |
Construction | 205,100 | 204,900 | 207,100 | 200 | 0.1% | -2,000 | -1.0% |
Manufacturing | 238,600 | 238,200 | 235,900 | 400 | 0.2% | 2,700 | 1.1% |
Service-Providing | 3,536,400 | 3,524,800 | 3,431,200 | 11,600 | 0.3% | 105,200 | 3.1% |
Private Service-Providing | 2,820,600 | 2,808,000 | 2,732,400 | 12,600 | 0.4% | 88,200 | 3.2% |
Trade, Transportation, and Utilities | 664,400 | 661,700 | 649,700 | 2,700 | 0.4% | 14,700 | 2.3% |
Information | 67,400 | 67,900 | 64,500 | -500 | -0.7% | 2,900 | 4.5% |
Finance | 204,600 | 204,200 | 208,400 | 400 | 0.2% | -3,800 | -1.8% |
Professional and Business Services | 789,400 | 786,000 | 766,100 | 3,400 | 0.4% | 23,300 | 3.0% |
Education and Health Services | 541,500 | 541,100 | 528,500 | 400 | 0.1% | 13,000 | 2.5% |
Leisure and Hospitality Services | 370,500 | 364,500 | 335,600 | 6,000 | 1.6% | 34,900 | 10.4% |
Miscellaneous Services | 182,800 | 182,600 | 179,600 | 200 | 0.1% | 3,200 | 1.8% |
Government | 715,800 | 716,800 | 698,800 | -1,000 | -0.1% | 17,000 | 2.4% |
Federal Government | 185,700 | 186,000 | 186,200 | -300 | -0.2% | -500 | -0.3% |
State Government | 156,000 | 157,000 | 151,500 | -1,000 | -0.6% | 4,500 | 3.0% |
Local Government | 374,100 | 373,800 | 361,100 | 300 | 0.1% | 13,000 | 3.6% |
*Current month's estimates are preliminary.
From December 2020 to December 2021, the VEC estimates that establishments in Virginia gained 107,000 jobs, an increase of 2.8%. In December, the private sector recorded an over-the-year gain of 90,000 jobs, while employment in the public sector gained 17,000 jobs.
Compared to a year ago, on a seasonally adjusted basis, nine of eleven major industry divisions experienced employment increases. The largest over-the-year job gain occurred in leisure and hospitality, up 34,900 jobs (+10.4%). The next largest over-the-year job gain occurred in professional and business services, up 23,300 jobs (+3.0%). Government experienced the third largest over-the-year job gain of 17,000 jobs (+2.4%). Within government, there were increases in local government employment (+13,000 jobs) and state government employment (+4,500 jobs) while federal government declined by 500 jobs over the year. Trade and transportation gained 14,700 jobs (+2.3%) while education and health services employment rose by 13,000 jobs (+2.5%). Miscellaneous added 3,200 jobs (+1.8%). Other increases were in information, up 2,900 jobs (+4.5%); manufacturing, up 2,700 jobs (+1.1%); and mining, up 1,100 jobs (+15.9%). Finance declined by 3,800 jobs (-1.8%) while construction fell by 2,000 jobs (-1.0%).
Total Nonfarm Employment in Virginia*
Area | Employment | November 2021 to | December 2020 to | ||||
December | November | December | Change | % Change | Change | % Change | |
Virginia | 3,988,100 | 3,975,800 | 3,881,100 | 12,300 | 0.3% | 107,000 | 2.8% |
Blacksburg-Christiansburg- | 79,000 | 79,300 | 73,400 | -300 | -0.4% | 5,600 | 7.6% |
Charlottesville MSA | 113,900 | 113,100 | 112,700 | 800 | 0.7% | 1,200 | 1.1% |
Harrisonburg MSA | 69,300 | 69,000 | 65,800 | 300 | 0.4% | 3,500 | 5.3% |
Lynchburg MSA | 103,100 | 102,400 | 99,900 | 700 | 0.7% | 3,200 | 3.2% |
Northern Virginia MSA | 1,507,600 | 1,505,800 | 1,452,700 | 1,800 | 0.1% | 54,900 | 3.8% |
Richmond MSA | 652,400 | 649,400 | 651,400 | 3,000 | 0.5% | 1,000 | 0.2% |
Roanoke MSA | 159,100 | 157,700 | 155,600 | 1,400 | 0.9% | 3,500 | 2.2% |
Staunton-Waynesboro MSA | 52,300 | 52,200 | 50,900 | 100 | 0.2% | 1,400 | 2.8% |
Virginia Beach- | 772,800 | 768,700 | 763,400 | 4,100 | 0.5% | 9,400 | 1.2% |
Winchester, | 68,600 | 68,300 | 66,000 | 300 | 0.4% | 2,600 | 3.9% |
*Current month's estimates are preliminary.
Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In December, nine metropolitan areas experienced over-the-month job gains while one declined. The largest absolute job increase occurred in Virginia Beach-Norfolk-Newport News (+4,100 jobs). The next largest absolute job gain occurred in Richmond (+3,000 jobs). The third largest increase occurred in Northern Virginia (+1,800 jobs). Roanoke added 1,400 jobs. Other over-the-month job gains occurred in Charlottesville (+800 jobs), Lynchburg (+700 jobs), Harrisonburg (+300 jobs), Winchester (+300 jobs), and Staunton-Waynesboro (+100 jobs). Blacksburg-Christiansburg-Radford declined by 300 jobs over-the-month.
Over-the-year, seasonally adjusted total nonfarm employment increased in all ten metropolitan areas. The Northern Virginia metropolitan area experienced the largest absolute job gain, up 54,900 jobs (+3.8%). Virginia Beach-Norfolk-Newport News ranked second, with a gain of 9,400 jobs (+1.2%). Blacksburg-Christiansburg-Radford ranked third, with a gain of 5,600 jobs (+7.6%). Other over-the-year job gains occurred in Harrisonburg (+3,500 jobs), Roanoke (+3,500 jobs), Lynchburg (+3,200 jobs), Winchester (+2,600 jobs), Staunton-Waynesboro (+1,400 jobs), Charlottesville (+1,200 jobs), and Richmond (+1,000 jobs).
Not Seasonally Adjusted Data
Virginia’s unadjusted unemployment rate remained unchanged in December at 2.7percent, and was down 3.0 percentage points from a year ago. Compared to a year ago, the number of unemployed decreased by 130,296, household employment increased by 143,477, and the labor force increased by 13,181. Virginia’s not seasonally adjusted unemployment rate continues to be below the national unadjusted rate, which declined by 0.2 of a percentage point in December to 3.7 percent.
Compared to last month, the December unadjusted workweek for Virginia’s 153,500 manufacturing production workers increased by one hour to 42.3 hours. Average hourly earnings of private-sector production workers increased by $.01 to $21.27 in December and average weekly earnings increased $21.68 to $899.72.
Technical note: Estimates of unemployment and industry employment levels are obtained from two separate monthly surveys. Resident employment and unemployment data are mainly derived from the Virginia portion of the national Current Population Survey (CPS), a household survey conducted each month by the U.S. Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey). Industry employment data is mainly derived from the Current Employment Statistics (CES) survey, a monthly survey of approximately 18,000 Virginia businesses conducted by BLS, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states and most major metropolitan areas (often referred to as the “establishment” survey). Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by the BLS. For national figures and information on how COVID-19 affected collection of the BLS establishment and household surveys in April 2020, refer to the BLS December 2021 Employment Situation press release for details.
The statistical reference week for the household survey this month was the week of December 12-18, 2021.
The Virginia Employment Commission plans to release the December local area unemployment rates on Wednesday, February 2, 2022. The data will be available on our website www.VirginiaWorks.com. The January 2022 statewide unemployment rate and employment data for both the state and metropolitan areas are scheduled to be released on Monday, March 14, 2022.
Files detailing December unemployment numbers are available below:
