The Virginia unemployment rate fell to 5.1 percent in March while total nonfarm payroll employment increased by 800

RICHMOND— Virginia’s seasonally adjusted unemployment rate fell 0.1 of a percentage point in March to 5.1 percent, which is 2.5 percentage points above the rate from a year ago. According to household survey data in March, the labor force increased by 1,618 to 4,238,239, as the number of unemployed residents decreased by 5,051. The number of employed residents increased by 6,669 to 4,023,563. Virginia’s seasonally adjusted unemployment rate continues to be below the national rate, which decreased to 6.0 percent.

Virginia nonagricultural wage and salary employment, from the monthly establishment survey, increased by 800 jobs in March to 3,887,600. February’s preliminary estimate was revised downward by 6,900, adding to that month’s job losses. In March, private sector employment increased by 800 jobs to 3,185,400, while public sector payrolls remained unchanged at 702,200.

Employment rose in five of eleven major industry sectors and declined in five, with one sector remaining unchanged. The largest job gain during March occurred in professional and business services with an increase of 2,300 jobs to 768,600. The second largest increase occurred in manufacturing (+2,000 jobs) to 236,700. Miscellaneous services saw 1,700 additional jobs gained, increasing to 181,000. Construction and mining and logging gained 600 and 300 jobs respectively, rising to 206,300 and 7,100 in March.

The largest job loss during March occurred in trade, transportation, and utilities with a decrease of 2,200 jobs to 653,400. The second largest decrease occurred in leisure and hospitality services which lost 1,300 jobs falling to 330,500. Other decreases in employment included information (-1,200) to 63,200, finance (-1,100) to 206,100, and education and health services (-300) to 532,500. Overall, government saw no change in employment levels in March, with state and local government each losing 100 jobs and federal government gaining 200.

Nonfarm Employment in Virginia*
Seasonally Adjusted

*Current month’s estimates are preliminary.

From March 2020 to March 2021, the VEC estimates that establishments in Virginia lost 182,000 jobs, a decrease of 4.5%. In March, the private sector recorded an over-the-year loss of 145,200 jobs, while employment in the public sector lost 36,800 jobs.

Compared to a year ago, on a seasonally adjusted basis, all eleven major industry divisions experienced employment decreases. The largest over-the-year job loss occurred in leisure and hospitality, down 76,600 jobs (-18.8%). The next largest over-the-year job loss occurred in government, down 36,800 jobs (-5.0%). Within government, there were decreases in local government employment (-30,700 jobs) and state government employment (-7,400 jobs). Federal government experienced an increase in employment (+1,300 jobs). Education and health services experienced the third largest over-the-year job loss of 22,100 jobs (-4.0%). Miscellaneous services employment declined by 13,400 jobs (-6.9%). Finance lost 8,000 jobs (-3.7%) while professional and business services lost 7,000 jobs (-0.9%). Other losses were in manufacturing, down 6,100 jobs (-2.5); information, down 5,500 jobs (-8.0%); trade and transportation, down 5,100 jobs (-0.8%); construction down 900 jobs (-0.4%); and mining down 500 jobs (-6.6%).

Total Nonfarm Employment in Virginia*

*Current month’s estimates are preliminary.

Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In March, six metropolitan areas experienced over-the-month job gains, three experienced losses over-the-month, and one experienced no over-the-month change. The largest absolute job increase occurred in Northern Virginia (+5,600 jobs). The next largest absolute job gain occurred in Charlottesville (+1,100 jobs). The third largest increase occurred in Blacksburg-Christiansburg-Radford (+500 jobs). Harrisonburg and Roanoke each added 300 jobs over the month. Winchester added 200 jobs over-the-month. Virginia Beach-Norfolk-Newport News experienced the largest absolute job loss, losing 1,900 jobs. Other over-the-month job losses occurred in Lynchburg (-200 jobs) and Richmond (-100 jobs). Finally, Staunton-Waynesboro recorded no change in jobs over-the-month.

Over-the-year, seasonally adjusted total nonfarm employment decreased in all ten metropolitan areas. The Northern Virginia metropolitan area experienced the largest absolute job loss, down 70,800 jobs (-4.6%). Richmond ranked second, with a loss of 38,900 jobs (-5.6%). Virginia Beach-Norfolk-Newport News ranked third with a decline of 32,500 jobs (-4.1%). Other over-the-year job losses occurred in Charlottesville (-8,000 jobs), Roanoke (-6,300 jobs), Lynchburg (-5,800 jobs), Harrisonburg (-2,800 jobs), Blacksburg-Christiansburg-Radford (-2,100 jobs), Staunton-Waynesboro (-600 jobs), and Winchester (-200 jobs).

Not Seasonally Adjusted Data

Virginia’s unadjusted unemployment rate fell by 0.3 of a percentage point in March to 5.1 percent, and was up 2.3 percentage points from a year ago. Compared to a year ago, the number of unemployed increased by 94,681, household employment decreased by 281,861, and the labor force decreased by 187,180. Virginia’s not seasonally adjusted unemployment rate continues to be below the national unadjusted rate, which fell by 0.4 percentage points in March to 6.2 percent.

Compared to last month, the March unadjusted workweek for Virginia’s 159,100 manufacturing production workers increased by 1.0 hours to 41.9 hours. Average hourly earnings of private-sector production workers decreased by $.05 to $21.06 in March and average weekly earnings increased $19.01 to $882.41.

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 March, refer to the BLS March 2021 Employment Situation press release for details.

The statistical reference week for the household survey this month was the week of March 7-13, 2021.

Files detailing March’s unemployment numbers are available below: