Virginia’s December Unemployment Rate increased by 0.1 percentage points to 3.6 percent; Labor Force Participation Rate remained unchanged at 64.3 percent and Employment decreased by 4,791 to 4,363,598.

January 27, 2026

Unemployment Rate increased by 0.1 percentage points to 3.6 percent; Labor Force Participation Rate remained unchanged at 64.3 percent and Employment decreased by 4,791 to 4,363,598

RICHMOND— Virginia Works – the Commonwealth’s Department of Workforce Development and Advancement – announced today that Virginia’s seasonally adjusted unemployment rate in December increased by 0.1 percentage points to 3.6 percent, which is 0.7 percentage points above the rate from a year ago. According to household survey data in December, the labor force decreased by 1,633 to 4,526,820 as the number of unemployed residents increased by 3,158 to 163,222. The number of employed residents decreased by 4,791 to 4,363,598 according to the Local Area Unemployment Statistics (“the household survey”). Virginia’s seasonally adjusted unemployment rate is 0.8 percentage points below the national rate, which decreased by 0.1 percentage points to 4.4 percent.

The Commonwealth’s labor force participation rate remained unchanged at 64.3 percent in December. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.

Month-Over-Month

In December’s Current Employment Statistics Survey, Virginia’s nonagricultural employment decreased by 4,100 to 4,262,200. November’s preliminary estimate of employment, after revision, decreased by 1,800 to 4,266,300. In December, private sector employment decreased by 5,600 to 3,505,900 while government employment increased by 1,500 to 756,300. Within that sector, federal government jobs decreased by 300 to 172,800, state government employment decreased by 100 to 162,700, and local government increased by 1,900 to 420,800 over the month.

Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In December, five experienced over-the-month job gains, and six experienced a decline. The largest job gain occurred in Government (+1,500) to 756,300. The second largest job gains occurred in Education and Health Services (+600) to 641,600 and Miscellaneous Services (+600) to 209,600. The other gains were in Financial Activities (+400) to 222,600; and Information (+100) to 68,900.

The largest job loss occurred in Construction (-3,400) to 224,900. The second largest job loss occurred in Professional and Business Services (-1,800) to 809,100. The third largest job loss occurred in Trade, Transportation, and Utilities (-1,600) to 680,200. The other losses were in Leisure and Hospitality (-200) to 406,600; Manufacturing (-200) to 235,500; and Mining and Logging (-100) to 6,900.

*Current month’s estimates are preliminary.

Year-Over-Year

From December 2024 to December 2025, Virginia Works estimates that total nonfarm employment in Virginia decreased by 11,700 to 4,262,200, private sector employment decreased by 2,000 to 3,505,900, and government employment decreased by 9,700 to 756,300 jobs. Within that sector, federal government jobs decreased by 23,900 to 172,800, state government employment decreased by 300 to 162,700, and local government increased by 14,500 to 420,800 over the year.

For the eleven industry sectors in Virginia over the year, five experienced over-the-year job gains, and six experienced a decline. The largest job gain occurred in Education and Health Services (+14,700) to 641,600. The second largest job gain occurred in Construction (+5,900) to 224,900. The third largest job gain occurred in Miscellaneous Services (+4,100) to 209,600. The other gains were in Financial Activities (+2,900) to 222,600; and Trade, Transportation, and Utilities (+1,800) to 680,200.

The largest job loss occurred in Leisure and Hospitality (-12,400) to 406,600. The second largest job loss occurred in Government (-9,700) to 756,300. The third largest job loss occurred in Professional and Business Services (-9,100) to 809,100. The other losses were in Manufacturing (-6,700) to 235,500; Information (-2,800) to 68,900; and Mining and Logging (-400) to 6,900.

*Current month’s estimates are preliminary.

Month-Over-Month

Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In December, one experienced over-the-month job gains, three remained unchanged, and six experienced a decline. The only job gain occurred in Harrisonburg (+100) to 70,500.

The largest job loss occurred in Arlington-Alexandria (-1,800) to 1,622,500. The second largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-1,400) to 815,400. The third largest job loss occurred in Richmond (-600) to 727,300. The other losses were in Charlottesville (-300) to 126,400; Winchester (-300) to 74,300; and Staunton (-100) to 53,900. Blacksburg-Christiansburg-Radford; Lynchburg; and Roanoke remained unchanged.

Year-Over-Year

Over the year, three metro areas experienced over-the-year job gains, one remained unchanged, and six experienced a decline. The largest job gain occurred in Richmond (+2,700) to 727,300. The second largest job gain occurred in Charlottesville (+900) to 126,400. The third largest job gain occurred in Winchester (+700) to 74,300.

The largest job loss occurred in Arlington-Alexandria (-14,900) to 1,622,500. The second largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-11,600) to 815,400. The third largest job loss occurred in Blacksburg-Christiansburg-Radford (-1,500) to 82,400. The other losses were in Harrisonburg (-900) to 70,500; Roanoke (-500) to 168,100; and Lynchburg (-300) to 104,100. Staunton remained unchanged.

Not Seasonally Adjusted Data

Virginia’s unadjusted unemployment rate decreased by 0.5 percentage points to 3.4 percent in December. It has increased by 0.9 percentage points to 3.4 percent compared to last year. Compared to a year ago, the number of unemployed increased by 37,659 to 153,029, household employment decreased by 105,845 to 4,337,005, and the labor force decreased by 68,186 to 4,490,034. Virginia’s not seasonally adjusted unemployment rate is 0.7 percentage points below the national unadjusted rate, which decreased by 0.2 percentage points to 4.1 percent.

Compared to last month, the December unadjusted workweek for Virginia’s 153,500 manufacturing production workers decreased by 0.8 to 38.2 hours. Average hourly earnings of private-sector production workers increased by $0.17 to $28.92, and average weekly earnings decreased by $16.51 to $1,104.74.

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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 Employment Situation press release for details.

The statistical reference week for the household survey this month was the week of December 7-13, 2025

Dec 25 CES Distribution Publication File