RICHMOND, Va. (WRIC) — New employment numbers touted by Governor Glenn Youngkin appear to show Virginia’s economy is recovering nicely from the pandemic.
The latest data from the U.S. Bureau of Labor Statistics shows Virginia’s unemployment rate at 2.9%. That figure is lower than it was in early 2020 — before the COVID-19 pandemic began.
“We have the largest workforce in 50 years, since the data has been collected,” Youngkin said at an event on July 21.
However, the U.S. Chamber of Commerce reports that Virginia is still experiencing a “More Severe” worker shortage. The chamber said Virginia has 55 workers per 100 available jobs.
“We have a good business climate and we are attracting businesses so employment is growing,” Fletcher Mangum, Founder & CEO of Mangum Economics, said. “Unfortunately, we don’t have the number of warm bodies to fill those positions. It’s not growing as quickly.”
In addition to the low unemployment rate, Virginia’s labor force participation rate — which measures the amount of working age people employed or looking for work — sits at 66.6%, which is the highest it’s been since January 2013.
Mangum said that proves Virginia’s economy is healthy.
“Virginia’s labor force grew by 5% between March of 2022 and June of this year,” Mangum said. “Nationally, that number was only 3.3%.”
Mangum added that he believes the workforce shortage should be temporary.
“People tend to move where there is economic opportunity,” Mangum said. “Over the long run and the medium run, that issue should resolve itself — but it is a short-term problem.”
The U.S. Chamber of Commerce data shows Virginia’s workforce shortage is more severe than neighboring states such as North Carolina, Kentucky, and West Virginia, but less severe than Maryland.
